Identifying the Relationship of R&D and Production with Business Performance - A Theoretical Perspective

Through an overview of relevant domestic and foreign scientific works on the relationship of research and development (R&D) and production in enterprises, the author focuses on the relationship between R&D and production, the correlation and the criteria used in evaluating the relationship between R&D and production. Most studies confirm that technology (including R&D) plays an important role in production activities and business results. R&D is highly important for technology firms, particularly high-tech enterprises, in terms of development and competition. This role of R&D is emphasized throughout the study review; yet, in different types of companies, the demonstration of the link between R&D and production and enterprise success remains difficult and unresolved.