Hi there,
Once you understand what RAW is you can see pretty easily why it has so many advantages.
The sensors used in digital cameras are basically two-dimensional arrays of photo-sensitive (photon-sensitive i.e. light) regions. Each region is is 'excited' by photons and, once excited, send an electrical pulse which - when combined with all the other regions' data - creates an image.
The thing is, the regions are not sensitive to colour. So, what happens when you take a picture is that three filters are used sequentially (red, green, blue) that block all other wavelengths of light from hitting the sensor. With JPG (or other compressions) these three pieces of information (intensity of light with blue filter, with green filter, with red filter) are combined to give you one single value (thus saving a lot of space). The problem is that if you are hoping to edit the photo later, you have lost the makeup of the region (or 'pixel')'s exact composition - which makes it much harder to get good results.
RAW, on the other hand, stores all three of these values (as opposed to combining them) so that, when editing, you have a lot more to work with. This comes at a cost though: keeping the three filters' information takes up a lot more space, the primary reason why RAW files are bigger than JPG.
I hope this helps !