A major effort in R&D may be very risky if technology is changing rapidly and the market is growing slowly.

Question

Quizplus · Accepted Answer

If technology is changing rapidly, any R&D effort may quickly become outdated and irrelevant, making it a high-risk investment. Additionally, if the market is growing slowly, the return on investment may not be sufficient to justify the cost of the R&D effort. Therefore, a major R&D effort under such circumstances can be very risky.

A Major Effort in R&D May Be Very Risky If