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A research and development (R&D) budget is a financial plan that outlines the expected costs associated with a company's research and development activities over a specific period. It typically includes expenditures for personnel, materials, equipment, and facilities aimed at innovating or improving products, services, or processes. The budget serves as a strategic tool to allocate resources effectively, ensuring that sufficient funding is available to support innovation and maintain competitive advantage. Companies often adjust their R&D budgets based on business goals, market conditions, and technological advancements.

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