Namely research and development.
What is research?
Research is a process of spending time, energy and resources exploring the unknown world and acquiring knowledge.
Bottom line: Research is the process of transforming money into knowledge.
What is development?
Development is a process of obtaining commercial returns, and it is a process of applying resources, knowledge and skills to obtain commercial benefits by meeting needs, so science and technology are productive forces.
Bottom line: development is the process of transforming knowledge into money.
As can be seen from the above, the commercial return obtained through R&D activities includes two parts: converting money into knowledge, and then converting knowledge into money. Money needs investment to transform into knowledge, and knowledge needs investment to transform into money. Therefore, R&D is an investment behavior, and only by investing in R&D can commercial returns be obtained.
IPD is essentially a process from business opportunity to commercial realization, and also a process from investment realization. Take Huawei as an example. Its investment model is shown in the following figure. Only through high-intensity R&D investment can we bring about sustained high-speed growth.
Huawei's 20-year growth.