Research and development efforts are essential for many firms especially those that put priority on new product development, process improvement, and to advance innovation goals. A firm that adopts a differentiation strategy often pursues different types of R&D than those that pursue cost leadership strategy, and often spends more on R&D. Firms often direct their R&D efforts to improve operational processes to make them more efficient when following cost leadership strategy. In contrast, firms that direct their R&D efforts toward innovations in the quality or uniqueness of their products or services often follow differentiation strategy. Choice (d) is the correct answer.