What is a key benefit associated with research and development for larger firms?

A key benefit associated with research and development for larger firms is the ability to innovate and save costs. Larger firms typically have greater resources, which allows them to invest significantly in R&D activities. This investment fosters innovation, enabling the development of new products, services, and processes that can enhance efficiency.

Through innovation, firms can streamline operations, reduce production costs, and enhance product quality, leading to better profit margins. Moreover, being at the forefront of technological advancements allows larger firms to maintain a competitive edge in the marketplace, attracting more customers and potentially increasing market share. This combination of innovation and cost savings creates a cycle that can lead to sustained growth and profitability.