Research and Development Companies - Data Loss

By: James Walsh

Change of any kind necessitates investment in the Research & Development (R&D) sector. However, investment levels vary according to the nature of the business sector. Those that cater to crucial human needs expend more on research compared to others. For example, pharmaceuticals, defence, biotechnology, aerospace, and the like, delve deeply.

The highest global spenders on R&D are USA, Japan, China, and some nations in the European Union. The UK presents a mixed picture in this aspect. Investment in research and development in the UK has increased by 9% totalling £21 billion. Some categories like the pharmaceuticals, biotechnology, aerospace and mobile telecommunication have increased their spending compared to their global counterparts, while a few other sectors have lagged behind. However, investment in R&D has often translated to a growth in the sales figure. This point has been exemplified by the two biggest sectors in the UK.

!b>Importance of R&D

The two biggest sectors in the UK, 'pharmaceuticals and biotechnology' and 'aerospace and defence' have experienced an increase in the sales figure similar to the growth in R&D investment and have witnessed an improvement in their profit margins.

‘Aerospace and defence' that were once loss-making sectors (in the year 2002) have turned profitable ventures. Investment in R&D wing of the biotechnology and pharmaceutical industry led to a profit enhancement by 10%. It has been observed that the value of the portfolios of firms with higher investment in R&D has increased more than the rise in the FTSE 100 indexes as a whole.

Though research has been an integral part of every business sector, the advent of computers has given a boost to the developmental work. Every wing in the research department makes use of the computers to enter their findings and make an analysis. The end product is again stored in the system, as chemical formulas, equations, industrial designs or ideas. Protecting this information is very important for the R&D data has been conceived after long durations of hard research work that necessitated an inflow of billions of pounds.

R&D Data and its Protection

R&D data is so important that it is prone to get stolen by hackers. Rivals and competitors, quite frequently, prefer easy access to information, rather than spend effort on its development.

Protecting such vital data is important.

  • Data should be stored only in its encrypted form.

  • All the department heads should be made responsible for the data generated by their department.

  • Every employee must be trained to identify security threat.

  • It is necessary to constantly monitor and protect the outbound transfer of files or any other information. E-mails, file transfer, instant messaging, in short, all the information that leaves the company has to be monitored and those that are found to violate corporate policies should be blocked, encrypted and isolated.

  • Information protection solutions should be used; they prevent disclosure of private information not only across networks but also across desktops.

Once the theft takes place, apprehending criminals is of no use. Data theft, therefore, has only one form of protection and that is prevention.

Another form of data loss that might not be so serious could be in the form of inaccessible data in the hard disk. This has to be retrieved soliciting professional expertise.

Recovery of Lost R&D Data

As data in the R&D department is important, the ‘DIY’ data recovery software should never be used. Only reputed data recovery service providers must be contacted, for their experts are experienced in performing recovery work and they are signatories to confidentiality agreements. (Confidentiality agreement ensures protection against possible data disclosure.)

Research and development is important for continued business existence. On average, a commercial enterprise sets apart 3.5% of its generated revenues on this work. However, some companies (are required to) allot much more than 15%. Once a research work is successful, the accomplished data is more important and valuable than the infrastructure of the company. Such data leads to the economic growth of the company and also the nation at large.

However, spending on research is highly risky, for the failure rates are high. To offset losses, the rate of profit margin on successful innovation is subsequently high.

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James Walsh is a freelance writer and copy editor. If you are concerned about data loss and would like more information on Data Recovery see

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