How innovation drives research and development
An ARM case study

Page 1: Introduction

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Using a laptop computer, Smartphone or iPad has become an essential part of everyday life for many people. Few, however, will be aware of how the technology that drives these tools is created. ARM is the world's leading semiconductor intellectual property (IP) supplier. Intellectual property is that which originates in the mind such as ideas, literary works, music and designs. ARM’s business...
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Page 2: New product development (NPD)

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New products may stem from invention or innovations. Invention is the formulation of new ideas for products or processes. Innovation is the practical application of new inventions into marketable products or services. Product development may follow different routes: A product-orientated approach is where a company develops a new product. It then seeks a market and ‘pushes’ the product...
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Page 3: Research

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The research process involves inquiry into and discovery of new ideas to solve a problem or create an opportunity. ARM invests around £140 million per year into its research programmes. As a knowledge-based research and development business, the majority of costs are associated with the company’s high quality employees. Push or pull? ARM’s R&D is predominantly...
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Page 4: Development

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Development involves transforming ideas into a product fit for market. From numerous ideas at the research stage, ARM will take only a few with potential into the development stage. The key elements of the development process include: A product brief – identifying what market need it fills. To produce a product brief, ARM works with around 1,000 companies. These companies may be ARM...
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Page 5: Challenges and benefits of R&D

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The challenges of a typical R&D process include: large costs – of people, time and equipment long timescales – for example in the pharmaceutical industry it can take as long as 10-20 years to complete full testing high risk – difficulties in anticipating changing market and consumer needs over the duration of R&D projects, which leads to uncertain outcomes. ARM meets...
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Page 6: Conclusion

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R&D supports invention and innovation. ARM, as a market-orientated business, relies on innovation to maintain its market-leading position in an industry focused on advancements in technology. Through the use of feedback, from both technical experts and customers, ARM ensures its product development reflects market demands. Its partnership approach reduces risk whilst minimising the time it...
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