# 1. R\&D for Sustainable Development

*This chapter unpacks R\&D from different angles: exploring how it works across sectors, what flavor we practice, and why sustainable development needs it now more than ever. We define our approach and make the case for R\&D as an essential capability for navigating uncertainty and meeting today’s needs without compromising tomorrow's possibilities.*

## What is R\&D?

Research and Development (R\&D) provides a specific lens through which we engage with complexity and create value in [sustainable development](/undp-accelerator-labs/references/glossary.md#sustainable-development). While the term R\&D is widely used across different sectors, its meaning and application vary significantly depending on the context.

<img src="/files/e8c5e20c2128c39272377cb1c10036c8f9b46484" alt="Figure 5: Three types of R&#x26;D" width="563">

Generally speaking, we see three types of R\&D (Figure 5) that yield different outcomes, each with its own focus and methodology:

* **R\&D in science** focuses on advancing our knowledge about the world, the universe and its phenomena – whether natural, social, cultural or economic. This type of R\&D generates a better understanding of how things work, often pursuing knowledge for its own sake. Scientific R\&D builds the foundational understanding that other forms of innovation depend upon.[<sup>\[1\]</sup>](#footnote-0)
* **R\&D in the private sector** sees companies establishing dedicated teams, often with substantial budgets, to develop new technologies, products and services.[<sup>\[2\]</sup>](#footnote-1) The goal here is market-driven: entering new markets, gaining a competitive advantage and generating profit through innovation. Private sector R\&D may build on scientific research, but often develops innovations directly from user needs, market gaps or internal capabilities that can scale through market mechanisms.
* **R\&D in the public sector** involves governments and public agencies setting up labs or innovation units to develop better responses to public issues.[<sup>\[3\]</sup>](#footnote-2) This includes creating public services and social innovations[<sup>\[4\]</sup>](#footnote-3) that improve livelihoods and help communities thrive. Public sector R\&D focuses on societal outcomes rather than profit, working on public challenges and community needs.

Our approach to R\&D for sustainable development has elements of all three types, but with a distinction. We gravitate more toward the way R\&D is conducted in the private and public sectors than in academia, where knowledge is often pursued for its own sake. The point of R\&D, in our context, is to generate knowledge that has an impact. And crucially, we do this collectively: working with communities, partners and networks to combine diverse knowledge sources and capabilities rather than conducting R\&D in isolation.

{% hint style="info" %}
**A definition of R\&D**

Research and Development (R\&D) refers to early-stage innovations and collective learning to close the gap between current results and bigger aspirations, as well as a proven approach to navigate uncharted territory.[<sup>\[5\]</sup>](#footnote-4)
{% endhint %}

This means R\&D sits at the early stage of the innovation process, where we explore what's possible before committing to large-scale implementation. It provides a cost-effective way to probe complex problems, generate learning and inform strategic pivots – essential capabilities in resource-constrained development contexts.

We focus on practical applications rather than pure research, working closely with communities and partners to develop solutions that address real-world challenges. This impact-oriented approach ensures that our R\&D efforts translate into tangible benefits for the people and systems we serve.

## Why sustainable development needs R\&D

What started as reimagining global development has evolved into R\&D that is collective and open by design. In an increasingly complex world, there are more questions than answers. We need R\&D to turn innovation learning into new value propositions and next practices for global development, especially in times of uncertainty.

Efforts to ensure future generations can meet their development needs are widespread, but impact is not enough to meet the targets and the 2030 deadline of the Sustainable Development Goals. Limited data and stagnant financing hold progress back, and global uncertainty can threaten or even undo progress. Against this backdrop, sustainable development needs R\&D for several critical reasons:

> ### Keeping up with the pace of change
>
> Sustainable development changes over time, and the pace of change doesn't wait for annual reviews. What was once considered a development solution can become polarizing in light of new data, changes in technology costs or evolving social consensus. As sustainable development evolves, R\&D helps fill gaps by creating evidence from experiments with new technology and methods, weak signals of change and – importantly – learning from how people solve their own problems. This enables us to see emerging opportunity spaces that are off the radar of our traditional development plans.
>
> ### Creating cost-effective evidence
>
> With global development budgets under pressure and a global context that is constantly changing in terms of both opportunities and risks, sustainable development needs a cost-effective way to probe complex problems, generate learning and inform pivots in strategy. As part of R\&D, experimentation and prototypes move ideas to action at a lower cost. They point to new opportunity spaces that have the potential to accelerate development if diffused and resourced appropriately.
>
> ### Moving beyond technocratic silos
>
> In resource-scarce environments, there is a premium on interventions that achieve multiple objectives. Sustainable development in particular looks for solutions that promote prosperity while protecting the planet and advancing people’s rights and needs. When generated from the grassroots, R\&D can create new value that cuts across silos by pointing to unexpected solutions that achieve this delicate balance. This cross-cutting approach is essential for addressing the interconnected nature of development challenges.
>
> ### Evolving in fragile contexts
>
> In an era marked by protracted crises, ranging from violent conflict and political upheaval to economic collapse and environmental disasters, development models must evolve to remain relevant and effective. By tapping into informal systems and economies, R\&D allows the creation of new value during food, energy and other crises, enabling people to explore what is possible when adaptation of deeper systems and infrastructure is not yet feasible.

## From innovation to impact

R\&D builds on innovation in global development by shifting focus from the “how” to the “what.” If innovation allows new ways of working, R\&D focuses on the results of innovation: new value and insights. R\&D turns the learning generated from innovation into new positions, frames and opportunity spaces that speak directly to where sustainable development has gotten stuck.

This transformation is crucial because it moves us beyond simply finding new methods or tools. Instead, R\&D helps us identify what fundamentally new approaches, partnerships or framings might unlock progress where traditional development approaches have reached their limits. It's about discovering not just better ways to do things, but better things to do entirely.

## The power and limits of R\&D

R\&D alone cannot shift systems. However, when deliberate and connected, R\&D can help sustainable development solutions evolve and transcend silos, and it can do so under pressure and at a low cost. R\&D helps transform innovation learning into new value for the economic, social and natural systems that determine development outcomes.

A global R\&D approach takes innovation results that are local and context-specific and shares intelligence across continents to confirm whether a particular phenomenon is an anomaly or an enduring new feature of the development landscape. This networked approach to R\&D creates a collective intelligence that is greater than the sum of its parts, enabling faster learning and more robust solutions.

## Moving forward

As we face the mounting challenges of achieving the Sustainable Development Goals by 2030, collective R\&D becomes not just useful but essential. By exploring, experimenting and learning together across networks and communities, we create the adaptive capacity needed to navigate uncertainty, the evidence base to make informed decisions under resource constraints, and the bridge between grassroots innovation and systemic change that creates impact beyond what any single actor could achieve alone.

In the following chapters, we will explore the fundamentals of our R\&D practice, examining the principles, modes and methods that make this approach effective in diverse development contexts. We'll see how R\&D operates in practice through real-world examples, and consider how to build R\&D capabilities to accelerate sustainable development in an uncertain world.

***

## **Notes**

1. We recommend Stokes (1997) for a nuanced account of R\&D in academia. His concept of "Pasteur's Quadrant" challenges the traditional separation between basic and applied research, showing how much academic work simultaneously advances knowledge and addresses real-world problems. [↑](#footnote-ref-0)
2. For example, Bell Labs, AT\&T's research division, became a model for corporate R\&D. Over decades, it produced the transistor, the laser, the solar cell, and the communications satellite, among many other inventions that opened entirely new markets (Gertner, 2012). [↑](#footnote-ref-1)
3. See Mulgan (2014). [↑](#footnote-ref-2)
4. See Pearman (2021) and Curtis et al. (2021). [↑](#footnote-ref-3)
5. Based on Jason Pearman’s (2021) definition of Social R\&D. [↑](#footnote-ref-4)


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