Definition
Research and experimental development (R&D)
In general R&D is defined as any creative systematic activity undertaken in order to increase the stock of knowledge, including knowledge of man, culture, and society, and the use of this knowledge to devise new applications. It includes fundamental research, applied research, and experimental development.
Fundamental Research: Any activity directed towards the increase of scientific knowledge or discovery of new fields of investigation, without any specific practical objective.
Applied research: Any activity directed towards the increase of scientific knowledge but with a specific practical aim in view.
Experimental development: Systematic use of the results of fundamental and applied research and of empirical knowledge directed towards the introduction of new materials, products, devices, processes and methods, or the improvement of existing ones, including the development of prototypes and pilot plants.
R&D Investment :The measurement of R&D investment is calculated on the basis of intramural current expenditure, including overheads, and intramural capital expenditure. The sum of the intramural expenditures incurred by the national institutions provides the total domestic expenditure which is the information presented at the international level. Total domestic expenditure on R&D activities refers to all expenditure made for this purpose in the course of a reference year in institutions and installations established in the national territory as well as installations physically situated abroad. The total expenditure for R&D as defined above comprises current expenditure, including overheads, and capital expenditure.
