In the Research Phase of a project, the developer uses information gathered in the Concept Phase to create a preliminary product specification, performing research as required. Working through the prioritized list of desired features, the features are classified from "straightforward" to "difficult," based on resources, available technologies and manufacturing techniques.

Depending on the nature and uniqueness of the product or service, existing similar and precursory products are identified and, to the extent possible, examined. Planned features are juxtaposed against prior features in an effort ensure that the new offering will be compelling to its intended market.

The design of a product or service is a factor of cost, time, what features can be included, and limitations imposed by existing products, alternatives, competitors and government regulation. If some key features are classified towards "difficult," they will almost certainly become part of the design's critical path. Or, the number of factors may grow beyond what can be easily reviewed. In either case, the developer may recommend a feasibility study to provide a more formal analysis of the tradeoffs and considerations as to exactly what the eventually offering should be.

Research will show how some prior applications of the technologies in a design might be adaptable to reduce design time. Also, the way these technologies interact can likely become part of the client's intellectual property, in the form of patents, which can be the source of additional revenue through patent licensing to other firms.