The topic of the first paragraph is research and development. The main point is that SETS carry out R&D, improving quality and reducing costs and thereby increasing company profits.

The topic of the second paragraph is the problems with SETS. The main point is that SETS' cost reducing and quality improving activities are subject to diminishing returns.

The paragraphs are superficially coherent, that is they do have an identifiable topic and main point. However, they are stylistically inappropriate and heavily redundant.

Rewrite the paragraphs to eliminate the redundancy. How many sentences are you left with?