M.Phil. / The important role that research and development (R&D) plays in the economic well being of a nation, and by implication the profitability of a business enterprise, has long been recognized. In this era, in which the world live in turbulent times, technology advances at an ever-increasing pace and customers needs are constantly changing. Global competition has reached unprecedented levels. Globalisation brings new economic powers and opportunities constantly. The global marketplace has emerged as a battlefield of the world, were many competitors are fighting for a share. These factors urge the need more than ever for new products, processes and services to be able to enter this battlefield and emerge as a victorious. The way to these new products, processes and services is the adaptation of an effective program of R&D. It is therefore important to appreciate the many aspects of the R&D function, which is the subject of this work. This research stresses the benefits that R&D brings to the nation and what measures that nation can adopt to promote R&D programs. The work also stresses the importance of R&D to private firms, and how the performance of such firms is linked to their use of technology and to the intensity of their R&D programs. Firms sustain economic growth and secure a competitive position by creating new products and new services, and these are the natural results of the R&D process. In the course of executing their R&D programs, firms are faced with many barriers and constraints that impede successful R&D activities. Many barriers have been identified and classified into different categories. Firms function in different environments, have different sizes, and different affiliations, hence it is difficult to suggest that there is a fixed set of R&D management practices that will fit all kinds of firms. In this research many general R&D management practices are recommended, which if implemented may lead to a successful R&D results. R&D is one of the important functions of the business; hence its strategy should be a natural extension of the business and should support this strategy. The concept of business strategy and why firms need to develop business strategy are discussed. Also elements needed to develop a best R&D strategy are recommended.