The research and development imperative for businesses
In today’s dynamic global economy, research and development (R&D) serve as a pivotal driver of progress, nurturing the birth of innovative products, state-of-the-art technologies, and revolutionary methods to connect with clients to enhance market share and profit margins. Nevertheless, amidst its unquestionable importance, a worrisome trend has surfaced within Pakistan’s business realm — a hesitancy to allocate resources for R&D. A recent survey of firms in Pakistan’s Golden Triangle of Engineering, i.e., Gujrat, Gujranwala and Lahore, was recently conducted by the Pakistan Institute of Development Economics (PIDE). This survey also confirmed this alarming trend, with 88 per cent of firms surveyed admitting to having spent zero funds on R&D in the preceding year. A recent United Nations Educational, Scientific and Cultural Organisation Institute of Statistics initiative paints a sobering picture: a mere 0.16pc of Pakistan’s GDP finds its way into domestic R&D investment. This minimal allocation reflects a pervasive pattern and raises a red flag about the nation’s commitment to fostering innovation and pushing industrial progress.