This chapter tackles one of the most critical questions in R&D management: how to define the right research direction. It highlights common pitfalls such as misaligned goals, lack of relevance, and excessive project timelines, while introducing practical tools to address these challenges. Central to this is a structured, seven-step original framework designed to align research with market needs, corporate strategy, and technological trends. The chapter also emphasizes the importance of balancing incremental improvements with bold, transformative projects, and proposes modular approaches to structure R&D activities for flexibility and responsiveness. By fostering collaboration between R&D and business units, leveraging diverse funding sources, and avoiding common innovation traps, R&D teams can create an environment where innovation thrives. This chapter sets the foundation for navigating the complexities of the technology landscape, which is further explored in the next chapter.