While R&D can bring substantial rewards, it also comes with risks, including: 1. High Costs: R&D activities can be expensive and may not always yield immediate returns. 2. Uncertainty: There is no guarantee that R&D efforts will lead to successful outcomes. 3. Intellectual Property Risks: Protecting innovations through patents and copyrights is essential but can be costly and time-consuming. 4. Market Risks: Even successful R&D projects may not find a market fit.