Return on investment in the context of "Research and development"

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⭐ Core Definition: Return on investment

Return on investment (ROI) or return on costs (ROC) is the ratio between net income or profit to investment (costs resulting from an investment of some resources). A high ROI means the investment's gains compare favorably to its cost. As a performance measure, ROI is used to evaluate the efficiency of an investment or to compare the efficiencies of several different investments. In economic terms, it is one way of relating profits to capital invested.

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👉 Return on investment in the context of Research and development

Research and development (R&D or R+D), known in some countries as experiment and design, is the set of innovative activities undertaken by corporations, wealthy industrialists (such as Alfred Lee Loomis ), or governments in developing new services or products. R&D constitutes the first stage of development of a potential new service or the production process.

Although R&D activities may differ across businesses, the primary goal of an R&D department is to develop new products and services. R&D differs from the vast majority of corporate activities in that it is not intended to yield immediate profit, and generally carries greater risk and an uncertain return on investment. R&D is crucial for acquiring larger shares of the market through new products. R&D&I represents R&D with innovation.

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Return on investment in the context of List of colleges and universities in the United States by endowment

Many colleges and universities in the United States maintain a financial endowment consisting of assets that are invested in financial securities, real estate, and other instruments. The investment yields a return that funds a portion of an institution's operational expenses while the principal exists in perpetuity. U.S. colleges and universities maintain some of the largest endowments in the world and make up the vast majority of higher education institutions with endowments greater than $1 billion.

The National Association of College and University Business Officers (NACUBO) maintains information on endowments at U.S. higher education institutions by fiscal year (FY). As of FY2024, the total endowment market value of U.S. institutions stood at $837.720 billion, with an average across all institutions of $1.322 billion and a median of $244.426 million.

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