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What Is Research and Development?

  • Understanding R&D
  • Types of R&D
  • Pros and Cons
  • Considerations
  • R&D vs. Applied Research
  • R&D Tax Credits

The Bottom Line

  • Business Essentials

What Is Research and Development (R&D)?

short note on research development

Investopedia / Ellen Lindner

Research and development (R&D) is the series of activities that companies undertake to innovate. R&D is often the first stage in the development process that results in market research product development, and product testing.

Key Takeaways

  • Research and development represents the activities companies undertake to innovate and introduce new products and services or to improve their existing offerings.
  • R&D allows a company to stay ahead of its competition by catering to new wants or needs in the market.
  • Companies in different sectors and industries conduct R&D—pharmaceuticals, semiconductors, and technology companies generally spend the most.
  • R&D is often a broad approach to exploratory advancement, while applied research is more geared towards researching a more narrow scope.
  • The accounting for treatment for R&D costs can materially impact a company's income statement and balance sheet.

Understanding Research and Development (R&D)

The concept of research and development is widely linked to innovation both in the corporate and government sectors. R&D allows a company to stay ahead of its competition. Without an R&D program, a company may not survive on its own and may have to rely on other ways to innovate such as engaging in mergers and acquisitions (M&A) or partnerships. Through R&D, companies can design new products and improve their existing offerings.

R&D is distinct from most operational activities performed by a corporation. The research and/or development is typically not performed with the expectation of immediate profit. Instead, it is expected to contribute to the long-term profitability of a company. R&D may often allow companies to secure intellectual property, including patents , copyrights, and trademarks as discoveries are made and products created.

Companies that set up and employ departments dedicated entirely to R&D commit substantial capital to the effort. They must estimate the risk-adjusted return on their R&D expenditures, which inevitably involves risk of capital. That's because there is no immediate payoff, and the return on investment (ROI) is uncertain. As more money is invested in R&D, the level of capital risk increases. Other companies may choose to outsource their R&D for a variety of reasons including size and cost.

Companies across all sectors and industries undergo R&D activities. Corporations experience growth through these improvements and the development of new goods and services. Pharmaceuticals, semiconductors , and software/technology companies tend to spend the most on R&D. In Europe, R&D is known as research and technical or technological development.

Many small and mid-sized businesses may choose to outsource their R&D efforts because they don't have the right staff in-house to meet their needs.

Types of Research and Development (R&D)

There are several different types of R&D that exist in the corporate world and within government. The type used depends entirely on the entity undertaking it and the results can differ.

Basic Research

There are business incubators and accelerators, where corporations invest in startups and provide funding assistance and guidance to entrepreneurs in the hope that innovations will result that they can use to their benefit.

M&As and partnerships are also forms of R&D as companies join forces to take advantage of other companies' institutional knowledge and talent.

Applied Research

One R&D model is a department staffed primarily by engineers who develop new products —a task that typically involves extensive research. There is no specific goal or application in mind with this model. Instead, the research is done for the sake of research.

Development Research

This model involves a department composed of industrial scientists or researchers, all of who are tasked with applied research in technical, scientific, or industrial fields. This model facilitates the development of future products or the improvement of current products and/or operating procedures.

The largest companies may also be the ones that drive the most R&D spend. For example, Amazon has reported $1.147 billion of research and development value on its 2023 annual report.

Advantages and Disadvantages of R&D

There are several key benefits to research and development. It facilitates innovation, allowing companies to improve existing products and services or by letting them develop new ones to bring to the market.

Because R&D also is a key component of innovation, it requires a greater degree of skill from employees who take part. This allows companies to expand their talent pool, which often comes with special skill sets.

The advantages go beyond corporations. Consumers stand to benefit from R&D because it gives them better, high-quality products and services as well as a wider range of options. Corporations can, therefore, rely on consumers to remain loyal to their brands. It also helps drive productivity and economic growth.

Disadvantages

One of the major drawbacks to R&D is the cost. First, there is the financial expense as it requires a significant investment of cash upfront. This can include setting up a separate R&D department, hiring talent, and product and service testing, among others.

Innovation doesn't happen overnight so there is also a time factor to consider. This means that it takes a lot of time to bring products and services to market from conception to production to delivery.

Because it does take time to go from concept to product, companies stand the risk of being at the mercy of changing market trends . So what they thought may be a great seller at one time may reach the market too late and not fly off the shelves once it's ready.

Facilitates innovation

Improved or new products and services

Expands knowledge and talent pool

Increased consumer choice and brand loyalty

Economic driver

Financial investment

Shifting market trends

R&D Accounting

R&D may be beneficial to a company's bottom line, but it is considered an expense . After all, companies spend substantial amounts on research and trying to develop new products and services. As such, these expenses are often reported for accounting purposes on the income statement and do not carry long-term value.

There are certain situations where R&D costs are capitalized and reported on the balance sheet. Some examples include but are not limited to:

  • Materials, fixed assets, or other assets have alternative future uses with an estimable value and useful life.
  • Software that can be converted or applied elsewhere in the company to have a useful life beyond a specific single R&D project.
  • Indirect costs or overhead expenses allocated between projects.
  • R&D purchased from a third party that is accompanied by intangible value. That intangible asset may be recorded as a separate balance sheet asset.

R&D Considerations

Before taking on the task of research and development, it's important for companies and governments to consider some of the key factors associated with it. Some of the most notable considerations are:

  • Objectives and Outcome: One of the most important factors to consider is the intended goals of the R&D project. Is it to innovate and fill a need for certain products that aren't being sold? Or is it to make improvements on existing ones? Whatever the reason, it's always important to note that there should be some flexibility as things can change over time.
  • Timing: R&D requires a lot of time. This involves reviewing the market to see where there may be a lack of certain products and services or finding ways to improve on those that are already on the shelves.
  • Cost: R&D costs a great deal of money, especially when it comes to the upfront costs. And there may be higher costs associated with the conception and production of new products rather than updating existing ones.
  • Risks: As with any venture, R&D does come with risks. R&D doesn't come with any guarantees, no matter the time and money that goes into it. This means that companies and governments may sacrifice their ROI if the end product isn't successful.

Research and Development vs. Applied Research

Basic research is aimed at a fuller, more complete understanding of the fundamental aspects of a concept or phenomenon. This understanding is generally the first step in R&D. These activities provide a basis of information without directed applications toward products, policies, or operational processes .

Applied research entails the activities used to gain knowledge with a specific goal in mind. The activities may be to determine and develop new products, policies, or operational processes. While basic research is time-consuming, applied research is painstaking and more costly because of its detailed and complex nature.

R&D Tax Credits

The IRS offers a R&D tax credit to encourage innovation and significantly reduction their tax liability. The credit calls for specific types of spend such as product development, process improvement, and software creation.

Enacted under Section 41 of the Internal Revenue Code, this credit encourages innovation by providing a dollar-for-dollar reduction in tax obligations. The eligibility criteria, expanded by the Protecting Americans from Tax Hikes (PATH) Act of 2015, now encompass a broader spectrum of businesses. The credit tens to benefit small-to-midsize enterprises.

To claim R&D tax credits, businesses must document their qualifying expenses and complete IRS Form 6765 (Credit for Increasing Research Activities). The credit, typically ranging from 6% to 8% of annual qualifying expenses, offers businesses a direct offset against federal income tax liabilities. Additionally, businesses can claim up to $250,000 per year against their payroll taxes.

Example of Research and Development (R&D)

One of the more innovative companies of this millennium is Apple Inc. As part of its annual reporting, it has the following to say about its research and development spend:

In 2023, Apple reported having spent $29.915 billion. This is 8% of their annual total net sales. Note that Apple's R&D spend was reported to be higher than the company's selling, general and administrative costs (of $24.932 billion).

Note that the company doesn't go into length about what exactly the R&D spend is for. According to the notes, the company's year-over-year growth was "driven primarily by increases in headcount-related expenses". However, this does not explain the underlying basis carried from prior years (i.e. materials, patents, etc.).

Research and development refers to the systematic process of investigating, experimenting, and innovating to create new products, processes, or technologies. It encompasses activities such as scientific research, technological development, and experimentation conducted to achieve specific objectives to bring new items to market.

What Types of Activities Can Be Found in Research and Development?

Research and development activities focus on the innovation of new products or services in a company. Among the primary purposes of R&D activities is for a company to remain competitive as it produces products that advance and elevate its current product line. Since R&D typically operates on a longer-term horizon, its activities are not anticipated to generate immediate returns. However, in time, R&D projects may lead to patents, trademarks, or breakthrough discoveries with lasting benefits to the company. 

Why Is Research and Development Important?

Given the rapid rate of technological advancement, R&D is important for companies to stay competitive. Specifically, R&D allows companies to create products that are difficult for their competitors to replicate. Meanwhile, R&D efforts can lead to improved productivity that helps increase margins, further creating an edge in outpacing competitors. From a broader perspective, R&D can allow a company to stay ahead of the curve, anticipating customer demands or trends.

There are many things companies can do in order to advance in their industries and the overall market. Research and development is just one way they can set themselves apart from their competition. It opens up the potential for innovation and increasing sales. However, it does come with some drawbacks—the most obvious being the financial cost and the time it takes to innovate.

Amazon. " 2023 Annual Report ."

Internal Revenue Service. " Research Credit ."

Internal Revenue Service. " About Form 6765, Credit for Increasing Research Activities ."

Apple. " 2023 Annual Report ."

short note on research development

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short note on research development

What Is Research and Development (R&D)? Definition and Guide

Learn the definition of research and development, the types of R&D, and the benefits and risks of investing in research and development for your business

What is research and development? Definition and guide

When it comes to the products and ideas that revolutionize and reshape our world, it can be tempting to imagine them springing from a singular moment of inspiration (think Isaac Newton and the apple).

The truth, however, is that in any industry, the most innovative and successful products are typically the result of years of study, experimentation, and hard work. That process is known as research and development—and whether you're running a high-tech Fortune 500 company or a small online store, it can be the first step to incredible success.

In this guide, you'll learn the definition of research and development, as well as the potential benefits and risks of investing in the practice.

What is research and development?

Research and Development is a systematic activity that companies undertake to innovate and introduce new products and services or to improve their existing offerings. 

Many people think of pharmaceutical and technology companies when they hear “R&D,” but other firms, including those that produce consumer products, invest time and resources into R&D as well. For example, a spaghetti sauce brand's many variations on the original product – “Chunky Garden,” “Four Cheese,” and “Tomato Basil Garlic”– are the results of extensive R&D.

Any business that creates and sells a product or service, whether it's software or spark plugs,  invests in some level of R&D .

Basic vs. applied research

Research and development comes in two main types: basic, and applied.

Basic research

Basic research (also known as fundamental research) is focused on improving our understanding of a particular problem or phenomenon through exploration of big questions. Some examples of basic research questions are:

  • Why do mice get caught in traps?
  • Why are some people allergic to gluten?

While basic research can certainly help a company acquire new knowledge, its focus on research for its own sake means that the financial benefits are uncertain. Consequently, this type of research and development is primarily performed by large corporations, universities, and government agencies.

Applied research

Applied research is also done to acquire knowledge. But unlike basic research, it's done with a specific goal, use, or product in mind. Where basic research is theoretical, applied research is practical, with a focus on finding workable solutions for current problems. Some examples of applied research questions include:

  • How can we build a better mousetrap?
  • What combination of flours will produce the best gluten-free pie crust?

Why invest in research and development?

While the overarching goal of research and development is to add to a company's bottom line, companies undertake R&D for a variety of reasons.

  • Create new and improved products: Whether you're starting a new company, or looking to expand your existing offerings, innovation research can help you meet customer demands for new and better products that solve their problems more quickly and easily.
  • Increase business efficiency: R&D can help you gain knowledge about your production processes, business structure, and place in the market, providing insights that increase productivity by eliminating time-consuming inefficiencies and allocating resources to the most impactful projects.
  • Reduce costs: Profits aren't the only way that research and development can pay off. In fact, many companies focus their R&D on improving existing technologies and processes for internal use, reducing the overall cost of bringing your products to market.
  • Remain competitive: Research and development is a great way to stay ahead of the competition . By investing in emerging technologies that improve your products, you can gain a competitive edge over even the most established firms.
  • Secure investment: Even if your research efforts aren't immediately profitable, they may point to future innovations or developments that investors are excited to support.

Who handles research and development?

Often, research and development is handled in house by an internal department in a company, but it can also be outsourced to a specialist or a university. Large multinational companies might do all three, and some of the outsourced work might be done in another country so that the company leverages both the talent and local market knowledge there.

Outsourced R&D is especially appealing to the small business owner who has a new product concept but lacks the design or engineering staff needed to create and test options. Solopreneurs who offer software as a service are an example on the smallest scale, as they sometimes outsource the R&D and resulting software development.

R&D and accounting

There are no guarantees when it comes to research and development, and it's very unlikely to lead to an immediate profit. Often, a company will spend a large amount of money in search of a better method, material, or medication, and never see a return on the investment. In this sense R&D is not an asset: it's a business  expense . For that reason, general  accounting  standards and practices dictate that most (but not all) costs associated with research and development be charged to expense as incurred.

That said, businesses can mitigate some of the impacts of research and development by leveraging federal tax breaks and deductions focused on promoting R&D.

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Research and development FAQ

What does r&d stand for, why is research and development important, what are the challenges of research and development, what is the difference between r&d and product development.

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short note on research development

Home Market Research Research Tools and Apps

Research Process Steps: What they are + How To Follow

There are various approaches to conducting basic and applied research. This article explains the research process steps you should know.

There are various approaches to conducting basic and applied research. This article explains the research process steps you should know. Whether you are doing basic research or applied research, there are many ways of doing it. In some ways, each research study is unique since it is conducted at a different time and place.

Conducting research might be difficult, but there are clear processes to follow. The research process starts with a broad idea for a topic. This article will assist you through the research process steps, helping you focus and develop your topic.

Research Process Steps

The research process consists of a series of systematic procedures that a researcher must go through in order to generate knowledge that will be considered valuable by the project and focus on the relevant topic.

To conduct effective research, you must understand the research process steps and follow them. Here are a few steps in the research process to make it easier for you:

10 research process steps

Step 1: Identify the Problem

Finding an issue or formulating a research question is the first step. A well-defined research problem will guide the researcher through all stages of the research process, from setting objectives to choosing a technique. There are a number of approaches to get insight into a topic and gain a better understanding of it. Such as:

  • A preliminary survey
  • Case studies
  • Interviews with a small group of people
  • Observational survey

Step 2: Evaluate the Literature

A thorough examination of the relevant studies is essential to the research process . It enables the researcher to identify the precise aspects of the problem. Once a problem has been found, the investigator or researcher needs to find out more about it.

This stage gives problem-zone background. It teaches the investigator about previous research, how they were conducted, and its conclusions. The researcher can build consistency between his work and others through a literature review. Such a review exposes the researcher to a more significant body of knowledge and helps him follow the research process efficiently.

Step 3: Create Hypotheses

Formulating an original hypothesis is the next logical step after narrowing down the research topic and defining it. A belief solves logical relationships between variables. In order to establish a hypothesis, a researcher must have a certain amount of expertise in the field. 

It is important for researchers to keep in mind while formulating a hypothesis that it must be based on the research topic. Researchers are able to concentrate their efforts and stay committed to their objectives when they develop theories to guide their work.

Step 4: The Research Design

Research design is the plan for achieving objectives and answering research questions. It outlines how to get the relevant information. Its goal is to design research to test hypotheses, address the research questions, and provide decision-making insights.

The research design aims to minimize the time, money, and effort required to acquire meaningful evidence. This plan fits into four categories:

  • Exploration and Surveys
  • Data Analysis
  • Observation

Step 5: Describe Population

Research projects usually look at a specific group of people, facilities, or how technology is used in the business. In research, the term population refers to this study group. The research topic and purpose help determine the study group.

Suppose a researcher wishes to investigate a certain group of people in the community. In that case, the research could target a specific age group, males or females, a geographic location, or an ethnic group. A final step in a study’s design is to specify its sample or population so that the results may be generalized.

Step 6: Data Collection

Data collection is important in obtaining the knowledge or information required to answer the research issue. Every research collected data, either from the literature or the people being studied. Data must be collected from the two categories of researchers. These sources may provide primary data.

  • Questionnaire

Secondary data categories are:

  • Literature survey
  • Official, unofficial reports
  • An approach based on library resources

Step 7: Data Analysis

During research design, the researcher plans data analysis. After collecting data, the researcher analyzes it. The data is examined based on the approach in this step. The research findings are reviewed and reported.

Data analysis involves a number of closely related stages, such as setting up categories, applying these categories to raw data through coding and tabulation, and then drawing statistical conclusions. The researcher can examine the acquired data using a variety of statistical methods.

Step 8: The Report-writing

After completing these steps, the researcher must prepare a report detailing his findings. The report must be carefully composed with the following in mind:

  • The Layout: On the first page, the title, date, acknowledgments, and preface should be on the report. A table of contents should be followed by a list of tables, graphs, and charts if any.
  • Introduction: It should state the research’s purpose and methods. This section should include the study’s scope and limits.
  • Summary of Findings: A non-technical summary of findings and recommendations will follow the introduction. The findings should be summarized if they’re lengthy.
  • Principal Report: The main body of the report should make sense and be broken up into sections that are easy to understand.
  • Conclusion: The researcher should restate his findings at the end of the main text. It’s the final result.

LEARN ABOUT: 12 Best Tools for Researchers

The research process involves several steps that make it easy to complete the research successfully. The steps in the research process described above depend on each other, and the order must be kept. So, if we want to do a research project, we should follow the research process steps.

QuestionPro’s enterprise-grade research platform can collect survey and qualitative observation data. The tool’s nature allows for data processing and essential decisions. The platform lets you store and process data. Start immediately!

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Introduction and definitions

History and importance.

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research and development , in industry , two intimately related processes by which new products and new forms of old products are brought into being through technological innovation .

Research and development, a phrase unheard of in the early part of the 20th century, has since become a universal watchword in industrialized nations. The concept of research is as old as science; the concept of the intimate relationship between research and subsequent development, however, was not generally recognized until the 1950s. Research and development is the beginning of most systems of industrial production. The innovations that result in new products and new processes usually have their roots in research and have followed a path from laboratory idea, through pilot or prototype production and manufacturing start-up, to full-scale production and market introduction. The foundation of any innovation is an invention . Indeed, an innovation might be defined as the application of an invention to a significant market need. Inventions come from research—careful, focused, sustained inquiry, frequently trial and error. Research can be either basic or applied, a distinction that was established in the first half of the 20th century.

Basic research is defined as the work of scientists and others who pursue their investigations without conscious goals, other than the desire to unravel the secrets of nature. In modern programs of industrial research and development, basic research (sometimes called pure research) is usually not entirely “pure”; it is commonly directed toward a generalized goal, such as the investigation of a frontier of technology that promises to address the problems of a given industry. An example of this is the research being done on gene splicing or cloning in pharmaceutical company laboratories.

Applied research carries the findings of basic research to a point where they can be exploited to meet a specific need, while the development stage of research and development includes the steps necessary to bring a new or modified product or process into production. In Europe , the United States , and Japan the unified concept of research and development has been an integral part of economic planning , both by government and by private industry.

The first organized attempt to harness scientific skill to communal needs took place in the 1790s, when the young revolutionary government in France was defending itself against most of the rest of Europe. The results were remarkable. Explosive shells, the semaphore telegraph, the captive observation balloon, and the first method of making gunpowder with consistent properties all were developed during this period.

The lesson was not learned permanently, however, and another half century was to pass before industry started to call on the services of scientists to any serious extent. At first the scientists consisted of only a few gifted individuals. Robert W. Bunsen, in Germany, advised on the design of blast furnaces. William H. Perkin, in England, showed how dyes could be synthesized in the laboratory and then in the factory. William Thomson (Lord Kelvin), in Scotland, supervised the manufacture of telecommunication cables. In the United States, Leo H. Baekeland, a Belgian, produced Bakelite, the first of the plastics. There were inventors, too, such as John B. Dunlop, Samuel Morse, and Alexander Graham Bell , who owed their success more to intuition , skill, and commercial acumen than to scientific understanding.

short note on research development

While industry in the United States and most of western Europe was still feeding on the ideas of isolated individuals, in Germany a carefully planned effort was being mounted to exploit the opportunities that scientific advances made possible. Siemens, Krupp, Zeiss, and others were establishing laboratories and, as early as 1900, employed several hundred people on scientific research. In 1870 the Physicalische Technische Reichsanstalt (Imperial Institute of Physics and Technology) was set up to establish common standards of measurement throughout German industry. It was followed by the Kaiser Wilhelm Gesellschaft (later renamed the Max Planck Society for the Advancement of Science), which provided facilities for scientific cooperation between companies.

In the United States, the Cambria Iron Company set up a small laboratory in 1867, as did the Pennsylvania Railroad in 1875. The first case of a laboratory that spent a significant part of its parent company’s revenues was that of the Edison Electric Light Company, which employed a staff of 20 in 1878. The U.S. National Bureau of Standards was established in 1901, 31 years after its German counterpart, and it was not until the years immediately preceding World War I that the major American companies started to take research seriously. It was in this period that General Electric , Du Pont, American Telephone & Telegraph, Westinghouse, Eastman Kodak, and Standard Oil set up laboratories for the first time.

Except for Germany, progress in Europe was even slower. When the National Physical Laboratory was founded in England in 1900, there was considerable public comment on the danger to Britain’s economic position of German dominance in industrial research, but there was little action. Even in France, which had an outstanding record in pure science , industrial penetration was negligible.

World War I produced a dramatic change. Attempts at rapid expansion of the arms industry in the belligerent as well as in most of the neutral countries exposed weaknesses in technology as well as in organization and brought an immediate appreciation of the need for more scientific support. The Department of Scientific and Industrial Research in the United Kingdom was founded in 1915, and the National Research Council in the United States in 1916. These bodies were given the task of stimulating and coordinating the scientific support to the war effort, and one of their most important long-term achievements was to convince industrialists, in their own countries and in others, that adequate and properly conducted research and development were essential to success.

At the end of the war the larger companies in all the industrialized countries embarked on ambitious plans to establish laboratories of their own; and, in spite of the inevitable confusion in the control of activities that were novel to most of the participants, there followed a decade of remarkable technical progress. The automobile, the airplane, the radio receiver, the long-distance telephone, and many other inventions developed from temperamental toys into reliable and efficient mechanisms in this period. The widespread improvement in industrial efficiency produced by this first major injection of scientific effort went far to offset the deteriorating financial and economic situation.

The economic pressures on industry created by the Great Depression reached crisis levels by the early 1930s, and the major companies started to seek savings in their research and development expenditure. It was not until World War II that the level of effort in the United States and Britain returned to that of 1930. Over much of the European continent the depression had the same effect, and in many countries the course of the war prevented recovery after 1939. In Germany Nazi ideology tended to be hostile to basic scientific research, and effort was concentrated on short-term work.

The picture at the end of World War II provided sharp contrasts. In large parts of Europe industry had been devastated, but the United States was immensely stronger than ever before. At the same time the brilliant achievements of the men who had produced radar, the atomic bomb , and the V-2 rocket had created a public awareness of the potential value of research that ensured it a major place in postwar plans. The only limit was set by the shortage of trained persons and the demands of academic and other forms of work.

Since 1945 the number of trained engineers and scientists in most industrial countries has increased each year. The U.S. effort has stressed aircraft, defense, space, electronics , and computers. Indirectly, U.S. industry in general has benefited from this work, a situation that compensates in part for the fact that in specifically nonmilitary areas the number of persons employed in the United States is lower in relation to population than in a number of other countries.

Outside the air, space, and defense fields the amount of effort in different industries follows much the same pattern in different countries, a fact made necessary by the demands of international competition. (An exception was the former Soviet Union , which devoted less R and D resources to nonmilitary programs than most other industrialized nations.) An important point is that countries like Japan, which have no significant aircraft or military space industries, have substantially more manpower available for use in the other sectors. The preeminence of Japan in consumer electronics, cameras, and motorcycles and its strong position in the world automobile market attest to the success of its efforts in product innovation and development.

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  • Starting the research process

A Beginner's Guide to Starting the Research Process

Research process steps

When you have to write a thesis or dissertation , it can be hard to know where to begin, but there are some clear steps you can follow.

The research process often begins with a very broad idea for a topic you’d like to know more about. You do some preliminary research to identify a  problem . After refining your research questions , you can lay out the foundations of your research design , leading to a proposal that outlines your ideas and plans.

This article takes you through the first steps of the research process, helping you narrow down your ideas and build up a strong foundation for your research project.

Table of contents

Step 1: choose your topic, step 2: identify a problem, step 3: formulate research questions, step 4: create a research design, step 5: write a research proposal, other interesting articles.

First you have to come up with some ideas. Your thesis or dissertation topic can start out very broad. Think about the general area or field you’re interested in—maybe you already have specific research interests based on classes you’ve taken, or maybe you had to consider your topic when applying to graduate school and writing a statement of purpose .

Even if you already have a good sense of your topic, you’ll need to read widely to build background knowledge and begin narrowing down your ideas. Conduct an initial literature review to begin gathering relevant sources. As you read, take notes and try to identify problems, questions, debates, contradictions and gaps. Your aim is to narrow down from a broad area of interest to a specific niche.

Make sure to consider the practicalities: the requirements of your programme, the amount of time you have to complete the research, and how difficult it will be to access sources and data on the topic. Before moving onto the next stage, it’s a good idea to discuss the topic with your thesis supervisor.

>>Read more about narrowing down a research topic

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So you’ve settled on a topic and found a niche—but what exactly will your research investigate, and why does it matter? To give your project focus and purpose, you have to define a research problem .

The problem might be a practical issue—for example, a process or practice that isn’t working well, an area of concern in an organization’s performance, or a difficulty faced by a specific group of people in society.

Alternatively, you might choose to investigate a theoretical problem—for example, an underexplored phenomenon or relationship, a contradiction between different models or theories, or an unresolved debate among scholars.

To put the problem in context and set your objectives, you can write a problem statement . This describes who the problem affects, why research is needed, and how your research project will contribute to solving it.

>>Read more about defining a research problem

Next, based on the problem statement, you need to write one or more research questions . These target exactly what you want to find out. They might focus on describing, comparing, evaluating, or explaining the research problem.

A strong research question should be specific enough that you can answer it thoroughly using appropriate qualitative or quantitative research methods. It should also be complex enough to require in-depth investigation, analysis, and argument. Questions that can be answered with “yes/no” or with easily available facts are not complex enough for a thesis or dissertation.

In some types of research, at this stage you might also have to develop a conceptual framework and testable hypotheses .

>>See research question examples

The research design is a practical framework for answering your research questions. It involves making decisions about the type of data you need, the methods you’ll use to collect and analyze it, and the location and timescale of your research.

There are often many possible paths you can take to answering your questions. The decisions you make will partly be based on your priorities. For example, do you want to determine causes and effects, draw generalizable conclusions, or understand the details of a specific context?

You need to decide whether you will use primary or secondary data and qualitative or quantitative methods . You also need to determine the specific tools, procedures, and materials you’ll use to collect and analyze your data, as well as your criteria for selecting participants or sources.

>>Read more about creating a research design

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Finally, after completing these steps, you are ready to complete a research proposal . The proposal outlines the context, relevance, purpose, and plan of your research.

As well as outlining the background, problem statement, and research questions, the proposal should also include a literature review that shows how your project will fit into existing work on the topic. The research design section describes your approach and explains exactly what you will do.

You might have to get the proposal approved by your supervisor before you get started, and it will guide the process of writing your thesis or dissertation.

>>Read more about writing a research proposal

If you want to know more about the research process , methodology , research bias , or statistics , make sure to check out some of our other articles with explanations and examples.

Methodology

  • Sampling methods
  • Simple random sampling
  • Stratified sampling
  • Cluster sampling
  • Likert scales
  • Reproducibility

 Statistics

  • Null hypothesis
  • Statistical power
  • Probability distribution
  • Effect size
  • Poisson distribution

Research bias

  • Optimism bias
  • Cognitive bias
  • Implicit bias
  • Hawthorne effect
  • Anchoring bias
  • Explicit bias

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Definitions of Research and Development: An Annotated Compilation of Official Sources

Introduction.

This document provides definitions of research and development from U.S. and international sources.

The first section (I) presents statistical definitions of R&D from the Organisation for Economic Co-operation and Development (OECD) Frascati Manual 2015: Guidelines for Collecting and Reporting Data on Research and Experimental Development. The next three sections are organized by sectors of the U.S. economy that perform or fund R&D—businesses (II), federal and state governments (III), and academic and nonprofit organizations (IV). Sources for definitions of R&D include the Office of Management and Budget (OMB), federal procurement, tax and accounting guidance, and surveys from the National Center for Science and Engineering Statistics (NCSES) within the National Science Foundation (NSF). The last section (V) presents R&D definitions from international statistical manuals on the System of National Accounts and globalization.

R&D definitions are provided unedited as they appear in their original sources.

I. OECD—Frascati Manual

Description.

The updated Frascati Manual (7th ed., OECD 2015) provides the definition of research and experimental development (R&D) and of its components: basic research, applied research, and experimental development. To provide guidance on what is and what is not an R&D activity, five criteria are provided requiring the activity to be novel, creative, uncertain in its outcome, systematic, and transferable and/or reproducible.

2.5 Research and experimental development (R&D) comprise creative and systematic work undertaken in order to increase the stock of knowledge—including knowledge of humankind, culture and society—and to devise new applications of available knowledge.

2.6 A set of common features identifies R&D activities, even if these are carried out by different performers. R&D activities may be aimed at achieving either specific or general objectives. R&D is always aimed at new findings, based on original concepts (and their interpretation) or hypotheses. It is largely uncertain about its final outcome (or at least about the quantity of time and resources needed to achieve it), it is planned for and budgeted (even when carried out by individuals), and it is aimed at producing results that could be either freely transferred or traded in a marketplace. For an activity to be an R&D activity, it must satisfy five core criteria.

2.7 The activity must be:

  • transferable and/or reproducible.

2.8 All five criteria are to be met, at least in principle, every time an R&D activity is undertaken whether on a continuous or occasional basis. The definition of R&D just given is consistent with the definition of R&D used in the previous editions of the Frascati Manual and covers the same range of activities.

2.9 The term R&D covers three types of activity: basic research, applied research and experimental development. Basic research is experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts, without any particular application or use in view. Applied research is original investigation undertaken in order to acquire new knowledge. It is, however, directed primarily towards a specific, practical aim or objective. Experimental development is systematic work, drawing on knowledge gained from research and practical experience and producing additional knowledge, which is directed to producing new products or processes or to improving existing products or processes.

Distribution by type of R&D

2.23 A breakdown by type of R&D is recommended for use in all four of the sectors used in this manual [Business enterprise; Higher education; Government; and Private nonprofit].

2.24 There are three types of R&D:

  • basic research
  • applied research
  • experimental development.

Basic research

2.25 Basic research is experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts, without any particular application or use in view.

Applied research

2.29 Applied research is original investigation undertaken in order to acquire new knowledge. It is, however, directed primarily towards a specific, practical aim or objective.

Experimental development

2.32 Experimental development is systematic work, drawing on knowledge gained from research and practical experience and producing additional knowledge, which is directed to producing new products or processes or to improving existing products or processes.

OECD, Frascati Manual , 7th ed, Chapter 2. The full Frascati Manual is available at http://oe.cd/frascati.

II. U.S. Business Enterprise R&D

A. financial accounting standards board.

Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) provides U.S. GAAP (generally accepted accounting principles) for businesses. ASC is organized by “topics” and Topic 730 is devoted to research and development (formerly covered in FASB Statement No. 2 “Accounting for Research and Development Costs”). Material formerly covered in FASB Statement No. 68 “Research and Development Arrangements” also appears under Topic 730. The FASB material below, copyrighted by the Financial Accounting Foundation, 401 Merritt 7, Norwalk, CT 06856, is used with permission.

Topic 730 Research and Development, 730-10-20 Glossary

Research is planned search or critical investigation aimed at discovery of new knowledge with the hope that such knowledge will be useful in developing a new product or service (hereinafter “product”) or a new process or technique (hereinafter “process”) or in bringing about a significant improvement to an existing product or process.

Development is the translation of research findings or other knowledge into a plan or design for a new product or process or for a significant improvement to an existing product or process whether intended for sale or use. It includes the conceptual formulation, design, and testing of product alternatives, construction of prototypes, and operation of pilot plants.

Topic 730 Research and Development, 730-10-55 Implementation Guidance and Illustrations Examples of Activities Typically Included in Research and Development 55-1.

The following activities typically would be considered research and development within the scope of this Topic (unless conducted for others under a contractual arrangement [see NOTES below]):

  • Laboratory research aimed at discovery of new knowledge
  • Searching for applications of new research findings or other knowledge
  • Conceptual formulation and design of possible product or process alternatives
  • Testing in search for or evaluation of product or process alternatives
  • Modification of the formulation or design of a product or process
  • Design, construction, and testing of preproduction prototypes and models
  • Design of tools, jigs, molds, and dies involving new technology
  • Design, construction, and operation of a pilot plant that is not of a scale economically feasible to the entity for commercial production
  • Engineering activity required to advance the design of a product to the point that it meets specific functional and economic requirements and is ready for manufacture
  • Design and development of tools used to facilitate research and development or components of a product or process that are undergoing research and development activities.

Examples of Activities Typically Excluded from Research and Development 55-2.

The following activities typically would not be considered research and development within the scope of this Topic:

  • Engineering follow-through in an early phase of commercial production
  • Quality control during commercial production including routine testing of products
  • Trouble-shooting in connection with break-downs during commercial production
  • Routine, ongoing efforts to refine, enrich, or otherwise improve upon the qualities of an existing product
  • Adaptation of an existing capability to a particular requirement or customer's need as part of a continuing commercial activity
  • Seasonal or other periodic design changes to existing products
  • Routine design of tools, jigs, molds, and dies
  • Activity, including design and construction engineering, related to the construction, relocation, rearrangement, or start-up of facilities or equipment other than the following:
  • Pilot plants (see [h] in the preceding paragraph)
  • Facilities or equipment whose sole use is for a particular R&D project [see NOTES below]
  • Legal work in connection with patent applications or litigation, and the sale or licensing of patents.

Topic 730 covers R&D expense or R&D costs funded by the reporting entity. Accounting for the costs of R&D activities conducted for others under a contractual arrangement is part of accounting for contracts in general (see, for example, Topic 606). See also paragraphs 25-8 to 25-10 under 730-20-25.

See Subtopic 912 under 730 for guidance to government contractors related to identifying R&D activities included in government contracts and the accounting for such activities.

For guidance on R&D arrangements, see Subtopics 730-20 and 810-30. For guidance regarding design and development costs for products to be sold under long-term supply arrangements, see Subtopic 340-10. Topic 850 specifies disclosure requirements for related party transactions.

For guidance on materials, property, plant, and equipment acquired or constructed for R&D projects, see paragraph 25-2 under 730-10-25 and Topic 360. For intangibles and contract services used for R&D, see paragraph 25-2 under 730-10-25 and Topic 720.

For guidance on computer software as a cost of R&D (formerly covered in part in FASB Statement No. 86 “Accounting for the Costs of Computer Software to Be Sold, Leased, or Otherwise Marketed” paragraphs 28–36), see Topic 730, Subtopic 10, especially paragraphs 25-3 and 25-4. Subtopic 350-40 covers general guidance on costs of computer software developed or obtained for internal use and Subtopic 985-20 covers computer software intended to be sold, leased or marketed. In particular, paragraph 985-20-25-1 offers guidance regarding costs incurred to establish the technological feasibility of a computer software product. For guidance related to a funded software-development arrangement, see paragraphs 985-605-25-86 through 25-87.

The accounting for recognized intangible assets acquired by an entity, other than intangibles acquired in a business combination, is specified in Topic 350 (formerly covered in FASB Statement No. 142 “Goodwill and Other Intangible Assets”). R&D assets acquired in a business combination or an acquisition by a not-for-profit entity is covered in Subtopic 805-20.

The material from FASB in this section was compiled in 2016 and is not meant to be an exhaustive summary of U.S. business R&D accounting guidance. For more information and FASB updates, see cited source.

FASB statements and other pronouncements. Available at https://asc.fasb.org and http://www.iasplus.com/en-us/standards/fasb/expenses/asc730 .

B. U.S. Code of Federal Regulations

Section 1.174-2 of the U.S. Code of Federal Regulations ( Title 26, Internal Revenue ) specifies the definition of R&D for tax filing purposes.

1.174-2 Definition of research and development expenditures.

(a) In general.

(1) The term research or experimental expenditures , as used in section 174, means expenditures incurred in connection with the taxpayer’s trade or business which represent research and development costs in the experimental or laboratory sense. The term generally includes all such costs incident to the development or improvement of a product. The term includes the costs of obtaining a patent, such as attorneys’ fees expended in making and perfecting a patent application. Expenditures represent research and development costs in the experimental or laboratory sense if they are for activities intended to discover information that would eliminate uncertainty concerning the development or improvement of a product. Uncertainty exists if the information available to the taxpayer does not establish the capability or method for developing or improving the product or the appropriate design of the product. Whether expenditures qualify as research or experimental expenditures depends on the nature of the activity to which the expenditures relate, not the nature of the product or improvement being developed or the level of technological advancement the product or improvement represents.

(2) For purposes of this section, the term product includes any pilot model, process, formula, invention, technique, patent, or similar property, and includes products to be used by the taxpayer in its trade or business as well as products to be held for sale, lease, or license.

(3) The term research or experimental expenditures does not include expenditures for:

i. The ordinary testing or inspection of materials or products for quality control (quality control testing);

ii. Efficiency surveys;

iii. Management studies;

iv. Consumer surveys;

v.  Advertising or promotions;

vi. The acquisition of another’s patent, model, production or process; or

vii. Research in connection with literary, historical, or similar projects.

26 CFR 1.174-2. Available at https://www.law.cornell.edu/cfr/text/26/1.174-2 .

C. NCSES Surveys on Business R&D

Business enterprise research and development (berd) survey.

  • Annual Business Survey (R&D for Microbusiness module)

The BERD Survey is the primary source of information on R&D performed or funded by businesses within the United States and is successor to the Business R&D and Innovation Survey (BRDIS) and the Survey of Industrial Research and Development. The BERD Survey covers for-profit, nonfarm businesses with ten or more employees. The survey is conducted by the Census Bureau for NCSES. For more information and statistics, see https://www.nsf.gov/statistics/srvyberd/ .

R&D comprise creative and systematic work undertaken in order to increase the stock of knowledge and to devise new applications of available knowledge. This includes (a) activities aimed at acquiring new knowledge or understanding without specific immediate commercial applications or uses (basic research); (b) activities aimed at solving a specific problem or meeting a specific commercial objective (applied research); and (c) systematic work, drawing on research and practical experience and resulting in additional knowledge, which is directed to producing new products or processes or to improving existing products or processes (development). R&D includes both direct costs such as salaries of researchers as well as administrative and overhead costs clearly associated with the company’s R&D.

The term R&D does NOT include expenditures for the following:

  • Costs for routine product testing, quality control, and technical services unless they are an integral part of an R&D project
  • Market research
  • Efficiency surveys or management studies
  • Literary, artistic, or historical projects, such as films, music, or books and other publications
  • Prospecting or exploration for natural resources

The following are examples of activities that typically would be excluded from research and development (in accordance with FASB Statement of Financial Accounting Standards No. 2 “Accounting for Research and Development Costs” https://fasb.org/page/document?pdf=aop_fas2.pdf&title=FAS%202%20(AS%20AMENDED ):

  • Engineering follow-through in an early phase of commercial production.
  • Quality control during commercial production including routine testing of products.
  • Trouble-shooting in connection with break-downs during commercial production.
  • Routine, ongoing efforts to refine, enrich, or otherwise improve upon the qualities of an existing product.
  • Adaptation of an existing capability to a particular requirement or customer's need as part of a continuing commercial activity.
  • Seasonal or other periodic design changes to existing products.
  • Routine design of tools, jigs, molds, and dies.
  • Activity, including design and construction engineering, related to the construction, relocation, rearrangement, or start-up of facilities or equipment other than (1) pilot plants and (2) facilities or equipment whose sole use is for a particular research and development project.

Does R&D include development of software and Internet applications?

Research and development activity in software and Internet applications refers only to activities with an element of uncertainty and that are intended to close knowledge gaps and meet scientific and technological needs…. regardless of the eventual user (internal or external).

R&D activity in software INCLUDES the following:

  • Software development or improvement activities that expand scientific or technological knowledge
  • Construction of new theories and algorithms in the field of computer science

R&D activity in software EXCLUDES the following:

  • Software development that does not depend on a scientific or technological advance, such as the following:
  • supporting or adapting existing systems
  • adding functionality to existing application programs, and
  • routine debugging of existing systems and software
  • Creation of new software based on known methods and applications
  • Conversion or translation of existing software and software languages
  • Adaptation of a product to a specific client, unless knowledge that significantly improved the base program was added in that process

NCSES BERD survey questionnaires. Available at https://www.nsf.gov/statistics/srvyberd/ .

Annual Business Survey (R&D for Microbusinesses module)

The Annual Business Survey (ABS) is the primary source of information on R&D for nonfarm, for-profit businesses operating in the United States with one to nine employees. For businesses with one or more employees, ABS also collects data on innovation, technology, intellectual property, business owner characteristics, and additional content that changes annually. The ABS is conducted by the Census Bureau in partnership with NCSES within NSF.

ABS Microbusinesses module: For businesses with one to nine employees, the survey collects the following information:

  • R&D performance
  • Total and R&D employment
  • Sources of R&D funding
  • Type of R&D work (basic research, applied research, and development)
  • Type of R&D cost (e.g., salaries and fringe benefits)

Research and development (R&D) comprise creative and systematic work undertaken in order to increase the stock of knowledge and to devise new applications of available knowledge.

R&D activity in software EXCLUDES:

Type of R&D

  • Basic research–activities aimed at acquiring new knowledge or understanding without specific immediate commercial applications or uses.
  • Applied research–activities aimed at solving a specific problem or meeting a specific commercial objective.
  • Experimental development–systematic work, drawing on research and practical experience and resulting in additional knowledge, which is directed to producing new products or processes or to improving existing products or processes.

NCSES ABS description and questionnaires. Available at https://www.nsf.gov/statistics/srvyabs/ .

III. Federal and State Government R&D

A. office of management and budget circular a-11.

The OMB prescribes budget regulations for federal agencies. Part II of Circular A-11 covers development of the president’s budget and provides guidance on agency submissions to OMB. Section 84 of the circular defines budget authority, outlays, and offsetting receipts for the conduct of R&D, construction and rehabilitation of R&D facilities, and R&D equipment.

Conduct of research and development (R&D): Research and experimental development activities are defined as creative and systematic work undertaken in order to increase the stock of knowledge—including knowledge of people, culture, and society—and to devise new applications using available knowledge.

  • Administrative expenses for R&D, such as the operating costs of research facilities and equipment and other overhead costs.
  • Investments in physical assets such as major equipment and facilities that support R&D programs. These investments should generally be reported under physical assets.
  • Routine product testing, quality control, collection of general-purpose statistics, routine monitoring, and evaluation of an operational program (when that program is not R&D). Spending of this type should generally be reported as non-investment activities.
  • Training of scientific and technical personnel should be reported as conduct of education and training. However, if an activity includes a mixture of R&D objectives as well as the education of graduate students, agencies should report under the lowest relevant line item.

Basic research is defined as experimental or theoretical work undertaken primarily to acquire new knowledge of underlying foundations of phenomena and observable facts. Basic research may include activities with broad or general applications in mind, such as the study of how plant genomes change, but should exclude research directed towards a specific application or requirement include, such as the optimization of the genome of a specific crop species.

Applied research is defined as original investigation undertaken in order to acquire new knowledge. Applied research is, however, directed primarily towards a specific practical aim or objective.

Experimental development is defined as creative and systematic work, drawing on knowledge gained from research and practical experience, which is directed at producing new products or processes or improving existing products or processes. Like research, experimental development will result in gaining additional knowledge.

For reporting experimental development activities, include the following:

  • The production of materials, devices, and systems or methods, including the design, construction and testing of experimental prototypes.
  • Technology demonstrations, in cases where a system or component is being demonstrated at scale for the first time, and it is realistic to expect additional refinements to the design (feedback R&D) following the demonstration. However, not all activities that are identified as “technology demonstrations” are R&D.
  • User demonstrations where the cost and benefit of a system are being validated for a specific use case. This includes low-rate initial production activities.
  • Pre-production development, which is defined as non-experimental work on a product or system before it goes into full production, including activities such as tooling, and development of production facilities. For example, exclude activities and programs that are categorized as “Operational Systems Development” in the Department of Defense’s budget activity structure. Activities and programs of this type should generally be reported as investments in other major equipment.

Physical assets are land, structures, equipment, and intellectual property (e.g., software or applications) that have an estimated useful life of two years or more; or commodity inventories. This character class code is used to enter amounts for the purchase, construction, manufacture, rehabilitation, or major improvement of physical assets regardless of whether the assets are owned or operated by the Federal Government, States, municipalities, or private individuals. The cost of the asset includes both its purchase price and all other costs incurred to bring it to a form and location suitable for its use. Within this character class code, agencies are also required to identify spending for R&D facilities and major equipment.

For reporting construction of R&D facilities, include the following:

  • Construction of facilities that are necessary for the execution of an R&D program. This may include land, major fixed equipment, and supporting infrastructure such as a sewer line, or housing at a remote location. Many laboratory buildings will include a mixture of R&D facilities and office space. The fraction of the building directly related to the conduct R&D may be calculated based on the percentage of the square footage.
  • Construction of other facilities, such as office space (which should be reported in the other construction and rehabilitation category on line 1313 or 1314).
  • Major movable R&D equipment.

For reporting Major equipment R&D (lines 1321 and 1322), include the following:

  • Acquisition, design, or production of major movable equipment, such as mass spectrometers, research vessels, DNA sequencers, and other movable major instruments for use in R&D activities.
  • Programs of $1 million or more that are devoted to the purchase or construction of R&D major equipment (see section 84.3(a)).
  • Minor equipment purchases, such as personal computers, standard microscopes, and simple spectrometers.

OMB Circular A-11. Available at https://www.whitehouse.gov/omb/circulars/.

B. Federal Acquisitions Regulations

The Federal Acquisitions Regulations (FAR) were established to codify uniform policies for the acquisition of supplies and services by executive agencies. Basic research is defined in FAR Part 2–Definitions of Words and Terms, subpart 2.101 “Definitions.” Applied research and development are defined in FAR Part 35–Research and Development Contracting, subpart 35.001 “Definitions.” Full text of FAR Parts is available at https://www.acquisition.gov/?q=browsefar.

Basic research means that research directed toward increasing knowledge in science. The primary aim of basic research is a fuller knowledge or understanding of the subject under study, rather than any practical application of that knowledge.

Applied research means the effort that (a) normally follows basic research, but may not be severable from the related basic research; (b) attempts to determine and exploit the potential of scientific discoveries or improvements in technology materials, processes, methods, devices, or techniques; and (c) attempts to advance the state of the art. When being used by contractors in cost principle applications, this term does not include efforts whose principal aim is the design, development, or testing of specific items or services to be considered for sale; these efforts are within the definition of "development," given below.

Development, as used in this part, means the systematic use of scientific and technical knowledge in the design, development, testing, or evaluation of a potential new product or service (or of an improvement in an existing product or service) to meet specific performance requirements or objectives. It includes the functions of design engineering, prototyping, and engineering testing; it excludes subcontracted technical effort that is for the sole purpose of developing an additional source for an existing product.

The Federal Acquisitions Regulations (FAR). Available at https://www.acquisition.gov/?q=browsefar.

C. Department of Defense Research, Development, Test, and Evaluation Budget Activities

The Research, Development, Test, and Evaluation (RDT&E) budget activities are broad categories reflecting different types of DOD science and technology activities. These definitions guide internal budget documents and submissions of data to other government agencies. The following is drawn from DOD’s Financial Management Regulation (DOD 7000.14-R), Volume 2B, Chapter 5 (Research, Development and Evaluation Appropriations). (As a historical artifact from previous DOD budget authority terminology, funds for RDT&E budget activity categories 1 through 7 are sometimes referred to as 6.1 through 6.7.) The full text of Chapter 5 is available at http://comptroller.defense.gov/FMR/vol2b_chapters.aspx .

Budget Activity 1, Basic Research. Basic research is systematic study directed toward greater knowledge or understanding of the fundamental aspects of phenomena and of observable facts without specific applications towards processes or products in mind. It includes all scientific study and experimentation directed toward increasing fundamental knowledge and understanding in those fields of the physical, engineering, environmental, and life sciences related to long-term national security needs. It is farsighted high payoff research that provides the basis for technological progress. Basic research may lead to: (a) subsequent applied research and advanced technology developments in Defense-related technologies, and (b) new and improved military functional capabilities in areas such as communications, detection, tracking, surveillance, propulsion, mobility, guidance and control, navigation, energy conversion, materials and structures, and personnel support. Program elements in this category involve pre-Milestone A efforts.

Budget Activity 2, Applied Research. Applied research is systematic study to understand the means to meet a recognized and specific need. It is a systematic expansion and application of knowledge to develop useful materials, devices, and systems or methods. It may be oriented, ultimately, toward the design, development, and improvement of prototypes and new processes to meet general mission area requirements. Applied research may translate promising basic research into solutions for broadly defined military needs, short of system development. This type of effort may vary from systematic mission-directed research beyond that in Budget Activity 1 to sophisticated breadboard hardware, study, programming and planning efforts that establish the initial feasibility and practicality of proposed solutions to technological challenges. It includes studies, investigations, and non-system specific technology efforts. The dominant characteristic is that applied research is directed toward general military needs with a view toward developing and evaluating the feasibility and practicality of proposed solutions and determining their parameters. Applied Research precedes system specific technology investigations or development. Program control of the Applied Research program element is normally exercised by general level of effort. Program elements in this category involve pre-Milestone B efforts, also known as Concept and Technology Development phase tasks, such as concept exploration efforts and paper studies of alternative concepts for meeting a mission need.

Budget Activity 3, Advanced Technology Development (ATD). This budget activity includes development of subsystems and components and efforts to integrate subsystems and components into system prototypes for field experiments and/or tests in a simulated environment. Budget Activity 3 includes concept and technology demonstrations of components and subsystems or system models. The models may be form, fit, and function prototypes or scaled models that serve the same demonstration purpose. The results of this type of effort are proof of technological feasibility and assessment of subsystem and component operability and producibility rather than the development of hardware for service use. Projects in this category have a direct relevance to identified military needs. Advanced Technology Development demonstrates the general military utility or cost reduction potential of technology when applied to different types of military equipment or techniques. Program elements in this category involve pre-Milestone B efforts, such as system concept demonstration, joint and Service-specific experiments or Technology Demonstrations and generally have Technology Readiness Levels of 4, 5, or 6. (For further discussion on Technology Readiness Levels, see the Assistant Secretary of Defense for Research and Engineering’s Technology Readiness Assessment (TRA) Guidance.) Projects in this category do not necessarily lead to subsequent development or procurement phases, but should have the goal of moving out of Science and Technology (S&T) and into the acquisition process within the Future Years Defense Program (FYDP). Upon successful completion of projects that have military utility, the technology should be available for transition.

Budget Activity 4, Advanced Component Development and Prototypes (ACD&P). Efforts necessary to evaluate integrated technologies, representative modes or prototype systems in a high fidelity and realistic operating environment are funded in this budget activity. The ACD&P phase includes system specific efforts that help expedite technology transition from the laboratory to operational use. Emphasis is on proving component and subsystem maturity prior to integration in major and complex systems and may involve risk reduction initiatives. Program elements in this category involve efforts prior to Milestone B and are referred to as advanced component development activities and include technology demonstrations. Completion of Technology Readiness Levels 6 and 7 should be achieved for major programs. Program control is exercised at the program and project level. A logical progression of program phases and development and/or production funding must be evident in the FYDP.

Budget Activity 5, System Development and Demonstration (SDD). SDD programs have passed Milestone B approval and are conducting engineering and manufacturing development tasks aimed at meeting validated requirements prior to full-rate production. This budget activity is characterized by major line item projects and program control is exercised by review of individual programs and projects. Prototype performance is near or at planned operational system levels. Characteristics of this budget activity involve mature system development, integration and demonstration to support Milestone C decisions, and conducting live fire test and evaluation and initial operational test and evaluation of production representative articles. A logical progression of program phases and development and production funding must be evident in the FYDP consistent with the Department’s full funding policy.

Budget Activity 6, RDT&E Management Support. This budget activity includes management and support for research, development, test and evaluation efforts and funds to sustain and/or modernize the installations or operations required for general research, development, test and evaluation. Test ranges, military construction, maintenance support of laboratories, operation and maintenance of test aircraft and ships, and studies and analyses in support of the RDT&E program are funded in this budget activity. Costs of laboratory personnel, either in-house or contractor operated, would be assigned to appropriate projects or as a line item in the Basic Research, Applied Research, or ATD program areas, as appropriate. Military construction costs directly related to major development programs are included in this budget activity.

Budget Activity 7, Operational System Development. This budget activity includes development efforts to upgrade systems that have been fielded or have received approval for full rate production and anticipate production funding in the current or subsequent fiscal year. All items are major line item projects that appear as RDT&E Costs of Weapon System Elements in other programs. Program control is exercised by review of individual projects. Programs in this category involve systems that have received approval for Low Rate Initial Production (LRIP). A logical progression of program phases and development and production funding must be evident in the FYDP, consistent with the Department’s full funding policy.

DOD, Financial Management Regulation (DOD 7000.14-R), Volume 2B, Chapter 5. Available at http://comptroller.defense.gov/FMR/vol2b_chapters.aspx .

D. NCSES Surveys on Federal R&D Funding

Survey of federal funds for research and development, survey of federal science and engineering support to universities, colleges, and nonprofit institutions, ffrdc research and development survey.

The Survey of Federal Funds for Research and Development is the primary source of information about federal funding for R&D in the United States. The survey is an annual census completed by the federal agencies that conduct R&D programs. For general information about this survey, please see https://www.nsf.gov/statistics/srvyfedfunds/.

R&D: Research and experimental development (R&D) activities are defined as creative and systematic work undertaken in order to increase the stock of knowledge—including knowledge of people, culture, and society—and to devise new applications using available knowledge.

For reporting R&D activities, include the following:

  • Investments in physical assets such as major equipment and facilities that support R&D programs. These investments should generally be reported under R&D Plant (see Tables 1, 1B, 2, 9, and 13 in the 2020 survey questionnaire available at https://www.nsf.gov/statistics/srvyfedfunds/#qs ).
  • Routine product testing, quality control, collection of general-purpose statistics, routine monitoring, and evaluation of an operational program (when that program is not R&D).
  • Training of scientific and technical personnel should be reported as conduct of education and training.

RDT&E (for DOD only): The Department of Defense’s Research, Development, Test, and Evaluation (RDT&E) can be both (1) activities for the development of a new system, or to expand the performance of fielded systems, and (2) an appropriation. The RDT&E budget activities are broad categories reflecting different types of RDT&E efforts, which include Basic Research (BA 1); Applied Research (BA 2); Advanced Technology Development (ATD) (BA 3); Major Systems Development, which includes Advanced Component Development and Prototypes (ACD&P) (BA 4), System Development and Demonstration (SDD) (BA 5), and RDT&E Management Support (BA 6); and Operational Systems Development (BA 7). The definitions of these categories are established by Department of Defense Instruction 5000.02, “Operation of the Defense Acquisition System.” For more information, see Budget Activities 1 through 7 in the DOD Financial Management Regulation (FMR), Volume 2B, Chapter 5, pages 5-4, 5-5, and 5-6 at http://comptroller.defense.gov/Portals/45/documents/fmr/Volume_02b.pdf .

R&D plant: R&D plant is defined as spending on both R&D facilities and major equipment as defined in Office of Management and Budget (OMB) Circular A-11 Section 84 (Schedule C) and includes physical assets, such as land, structures, equipment, and intellectual property (e.g., software or applications) that have an estimated useful life of two years or more. Reporting for R&D plant includes the purchase, construction, manufacture, rehabilitation, or major improvement of physical assets regardless of whether the assets are owned or operated by the Federal Government, States, municipalities, or private individuals. The cost of the asset includes both its purchase price and all other costs incurred to bring it to a form and location suitable for use.

For reporting construction of R&D facilities and major moveable R&D equipment, include the following:

  • Construction of facilities that are necessary for the execution of an R&D program. This may include land, major fixed equipment, and supporting infrastructure such as a sewer line, or housing at a remote location. Many laboratory buildings will include a mixture of R&D facilities and office space. The fraction of the building that is considered to be R&D may be calculated based on the percentage of square footage that is used for R&D.
  • Acquisition, design, or production of major moveable equipment, such as mass spectrometers, research vessels, DNA sequencers, and other moveable major instrumentation for use in R&D activities.
  • Programs of $1 million or more that are devoted to the purchase or construction of R&D major equipment.

Exclude the following:

  • Construction of other non-R&D facilities
  • Minor equipment purchases, such as personal computers, standard microscopes, and simple spectrometers (report these costs under total R&D, not R&D Plant)

Obligations for foreign R&D plant are limited to federal funds for facilities that are located abroad and used in support of foreign R&D.

Type of R&D: Type of R&D has three components for non-DOD respondents: basic research, applied research, and development.

Basic research: Basic research is defined as experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts. Basic research may include activities with broad or general applications in mind, such as the study of how plant genomes change, but should exclude research directed towards a specific application or requirement, such as the optimization of the genome of a specific crop species. Basic research represents Department of Defense Budget Activity 1.

Applied research: Applied research is defined as original investigation undertaken in order to acquire new knowledge. Applied research is, however, directed primarily towards a specific practical aim or objective. Applied research represents Department of Defense Budget Activity 2.

Experimental development: Experimental development is defined as creative and systematic work, drawing on knowledge gained from research and practical experience, which is directed at producing new products or processes or improving existing products or processes. Like research, experimental development will result in gaining additional knowledge.

  • The production of materials, devices, and systems or methods, including the design, construction, and testing of experimental prototypes.

For DOD Agencies, development itself is divided into three categories: advanced technology development, major systems development, and operational systems development.

  • Advanced technology development: This category is used for activities in DOD’s Budget Activity 3. For more information, see Budget Activity 3 on pages 5-4 and 5-5 of the DOD Financial Management Regulation (FMR), Volume 2B, Chapter 5, at http://comptroller.defense.gov/Portals/45/documents/fmr/Volume_02b.pdf.
  • Major systems development: This category is used for activities in DOD’s Budget Activities 4 through 6. For more information, see Budget Activities 4 through 6 on page 5-5 of the DOD Financial Management Regulation (FMR), Volume 2B, Chapter 5 at http://comptroller.defense.gov/Portals/45/documents/fmr/Volume_02b.pdf .
  • NOTE: As of the FY 2016 data collection, major systems development no longer includes Budget Activity 7.
  • Operational systems development: This category is used for activities in DOD’s Budget Activity 7. For more information, see Budget Activity 7 on page 5–6 of the DOD Financial Management Regulation (FMR), Volume 2B, Chapter 5 at http://comptroller.defense.gov/Portals/45/documents/fmr/Volume_02b.pdf.

NCSES, Survey of Federal Funds for R&D forms, available at https://www.nsf.gov/statistics/srvyfedfunds/#qs .

This NCSES survey is congressionally mandated and is the only source of comprehensive data on federal science and engineering funding to individual academic and nonprofit institutions. For general information see https://www.nsf.gov/statistics/srvyfedsupport/ .

Research and development (R&D) activities are defined as creative and systematic work undertaken in order to increase the stock of knowledge—including knowledge of people, culture, and society—and to devise new applications using available knowledge.

  • Investments in physical assets such as major equipment and facilities that support R&D programs. These investments should generally be reported under physical assets, discussed under R&D plant.

Advanced technology development (DOD only) is one of the two categories the Department of Defense uses for development (the “D” in R&D). The category advanced technology development is used for the activities in DOD’s Budget Activity 3, Advanced Technology Development (ATD). For more information, see Budget Activity 3 on pages 5-4 to 5-5 of the DOD Financial Management Regulation (FMR), Volume 2B, Chapter 5, at http://comptroller.defense.gov/portals/45/documents/fmr/current/02b/02b_05.pdf.

Major systems development (DOD only) is the second of the two categories the Department of Defense uses for development. The category major systems development is used for activities in DOD’s Budget Activities 4 through 6. For more information, see Budget Activities 4 through 6 (Advanced Component Development and Prototypes [ACD&P], System Development and Demonstration [SDD], and RDT&E Management Support) on page 5-5 of the DOD Financial Management Regulation (FMR), Volume 2B, Chapter 5 at http://comptroller.defense.gov/portals/45/documents/fmr/current/02b/02b_05.pdf.

NOTE: As of FY 2016 data collection, major systems development no longer includes Budget Activity 7.

R&D plant is defined as R&D facilities, intellectual property (e.g., software or applications); major fixed equipment, such as reactors, wind tunnels, and particle accelerators; and major moveable equipment, such as mass spectrometers, research vessels, DNA sequencers, and other major moveable instruments for use in R&D activities. Amounts include acquisition of, construction of, major repairs to, or alterations in structures, works, equipment, facilities, or land for use in R&D activities at federal or nonfederal installations. Excluded from the R&D plant category are costs of expendable or movable equipment (e.g., simple spectrometers, standard microscopes), personal computers, and office furniture and equipment. Also excluded are the costs of predesign studies (e.g., those undertaken before commitment to a specific facility).

These excluded costs are reported under “total conduct of research and development.”

If the R&D facilities are a larger facility devoted to other purposes as well, the funds should be distributed among the categories of support involved as appropriate. In general, another category that would be involved is facilities and equipment for instruction in S&E.

NCSES, Survey of Federal Science and Engineering Support to Universities, Colleges, and Nonprofit Institutions, available at https://www.nsf.gov/statistics/srvyfedsupport/#qs .

The FFRDC Research and Development Survey is the primary source of information on separately budgeted R&D expenditures at federally funded research and development centers (FFRDCs) in the United States. Conducted annually for university-administered FFRDCs since FY 1953 and all FFRDCs since FY 2001, the survey collects information on R&D expenditures by source of funds and types of research and expenses. The survey is an annual census of the full population of eligible FFRDCs. See https://www.nsf.gov/statistics/srvyffrdc/ for more on this survey https://www.nsf.gov/statistics/ffrdclist/ for the Master List of FFRDCs maintained by NCSES.

Research and Development (R&D)

R&D is creative and systematic work undertaken in order to increase the stock of knowledge— including knowledge of humankind, culture, and society—and to devise new applications of available knowledge. R&D covers three activities defined below—basic research, applied research, and experimental development.

  • Basic research is experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts, without any particular application or use in view.
  • Applied research is original investigation undertaken in order to acquire new knowledge. It is directed primarily towards a specific, practical aim or objective.
  • Experimental development is systematic work, drawing on knowledge gained from research and practical experience and producing additional knowledge, which is directed to producing new products or processes or to improving existing products or processes.

NCSES, FFRDC R&D Survey forms, available at https://www.nsf.gov/statistics/srvyffrdc/ .

E. State Government R&D

Survey of state government r&d.

This NCSES survey is the only source for comprehensive, uniform statistics regarding the extent of R&D activity performed and funded by departments and agencies in each of the nation’s 50 state governments, the government of the District of Columbia, and the government of Puerto Rico. For general information, see https://www.nsf.gov/statistics/srvystaterd/.

R&D comprise creative and systematic work undertaken in order to increase the stock of knowledge—including knowledge of humankind, culture, and society—and to devise new applications of available knowledge.

  • R&D is aimed at new findings (novel)
  • It has not been done before
  • It may produce findings that could be published in academic journals
  • It includes ideas that could be patented
  • R&D focuses on original concepts or ideas (creative)
  • Increases our knowledge of the subject
  • Helps create new products or applications
  • R&D outcomes are uncertain (because it’s never been done before)
  • Solutions are not always obvious or expected
  • Uncertain about, cost, time, or ability to achieve results
  • R&D is planned and budgeted (systematic)
  • Projects processes and outcomes are documented
  • Projects are planned and managed
  • R&D results in solutions that others may find useful (transferable)
  • Findings can be generalized to other situations and locations
  • Findings are reproducible

What is NOT R&D?

  • Construction and acquisition of land and facilities used primarily for R&D (reported separately in this survey)
  • Fixed equipment used primarily for R&D (reported separately in this survey)
  • Program planning and evaluation
  • Business development services for new companies
  • Commercialization (includes promoting/producing the products/services from R&D projects)
  • Economic/policy/feasibility studies
  • General patient services
  • Information systems
  • Management studies
  • Marketing of products/services
  • Market research or analysis
  • Routine data collection/dissemination
  • Routine monitoring/testing
  • Strategic planning
  • Technology transfer

NCSES, Survey of State Government R&D forms. Available at https://www.nsf.gov/statistics/srvystaterd/#qs .

IV. U.S. Higher Education R&D and R&D by Nonprofit Organizations

A. guidance from the office of management and budget.

OMB issued the Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, Title 2 Part 200 of the Code of Federal Regulations (CFR) in December 2013. This guidance supersedes and streamlines requirements from the following OMB Circulars: A-21, A-50, A-87, A-89, A-102, A-110, A-122, and A-133. The full text of 2 CFR Part 200 is available at http://www.ecfr.gov/cgi-bin/text-idx?ID=68fca03721b9c921be5236306ae7a5fa&tpl=/ecfrbrowse/Title02/2chapterII.tpl .

Previous definitions for R&D reporting relevant to educational institutions, hospitals and nonprofit organizations, state and local governments, and nonprofit organizations were addressed in OMB Circulars A-21, A-110, and A-133. Although these circulars are still available ( https://obamawhitehouse.archives.gov/omb/circulars_default ) they are, with limited exceptions, no longer applied to assistance awards issued after the implementation date of 26 December 2014.

Research and Development (R&D) means all research activities, both basic and applied, and all development activities that are performed by non-federal entities. The term research also includes activities involving the training of individuals in research techniques where such activities utilize the same facilities as other research and development activities and where such activities are not included in the instruction function.

“Research” is defined as a systematic study directed toward fuller scientific knowledge or understanding of the subject studied. “Development” is the systematic use of knowledge and understanding gained from research directed toward the production of useful materials, devices, systems, or methods, including design and development of prototypes and processes.

2 CFR 200.87. Available at http://www.ecfr.gov/cgi-bin/text-idx?tpl=/ecfrbrowse/Title02/2cfr200_main_02.tpl .

B. Higher Education R&D

Higher education research and development (herd) survey.

This NCSES survey is the primary source of information on R&D expenditures at U.S. colleges and universities and is the successor to the Survey of Research and Development Expenditures at Universities and Colleges. The HERD Survey collects information on R&D expenditures by field of research and source of funds and also gathers information on types of research and expenses and headcounts of R&D personnel. The survey is an annual census of institutions that expended at least $150,000 in separately budgeted R&D in the fiscal year. For general information about this survey, please see https://www.nsf.gov/statistics/srvyherd/.

R&D is creative and systematic work undertaken in order to increase the stock of knowledge—including knowledge of humankind, culture, and society—and to devise new applications of available knowledge. R&D covers three activities defined below—basic research, applied research, and experimental development.

NCSES, Higher Education Research and Development Survey forms. Available at https://www.nsf.gov/statistics/srvyherd/.

C. R&D by Nonprofit Organizations

Nonprofit research activities survey.

The Nonprofit Research Activities (NPRA) Survey measures research and experimental development (R&D) performance and funding at U.S. 501(c) nonprofit organizations. It is currently collected as a separate module of the ABS data collection.

  • Type of R&D work (basic research, applied research, and experimental development)
  • R&D field

For the purposes of this survey, research includes research and experimental development. Research and experimental development comprise creative and systematic work to

  • Increase the stock of knowledge, including knowledge of humankind, culture, and society OR
  • Devise new applications of available knowledge, including materials, products, devices, processes, systems, or services

Research activities must be

  • Novel: projects that advance current knowledge or create new knowledge
  • Creative: projects focused on original concepts and hypotheses
  • Uncertain: project outcomes are unable to be completely determined at the outset
  • Systematic: projects are planned and budgeted
  • Transferable/Reproducible: project methodology and results are transferable/reproducible to other situations and locations

May meet the criteria for research

  • Laboratory or animal studies
  • Clinical trials
  • Prototype development
  • Outcomes research
  • Development/measurement of new methods to deliver/measure social service outcomes
  • Policy research
  • Humanities research
  • Research traineeships
  • Other experimental studies

Most likely do not meet the criteria for research

  • Internal program monitoring or evaluation
  • Public service grants or outreach programs
  • Education or training programs
  • Quality control testing
  • Management studies/efficiency surveys
  • Feasibility studies, unless included as part of an overall research project

Type of R&D Work

  • Basic research: Experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts, without any particular application or use in view.
  • Applied research: Original investigation undertaken in order to acquire new knowledge. It is directed primarily towards a specific, practical aim or objective.
  • Experimental development: Systematic work, drawing on knowledge gained from research and practical experience and producing additional knowledge, which is directed to producing new products or processes or to improving existing products or processes.

NCSES ABS Nonprofit Module questionnaire. Available at https://www.nsf.gov/statistics/srvynpra/ .

V. R&D in National Accounts and Globalization Manuals

A. r&d in the system of national accounts (sna).

The System of National Accounts, 2008 (2008 SNA) is a statistical framework that provides a comprehensive set of macroeconomic accounts for policy and research purposes. The 2008 SNA recognized R&D as investment or produced asset in an economy (SNA 6.230, 10.98). R&D is defined in paragraph 10.103 (Chapter 10: The capital account, Section B: Gross capital formation).

10.103 Intellectual property products include the results of research and development (R&D). Research and [experimental] development consists of the value of expenditures on creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and use of this stock of knowledge to devise new applications.

United Nations (UN) Statistical Division—2008 System of National Accounts.

B. Measuring R&D in global economic activities

Guidance for official statistics on trade, investment, and international production—called global value chains (GVCs) in recent economics and policy research literature—explicitly cover R&D and related intangible assets under the heading of “intellectual property products” (IPP). (In addition to R&D, IPPs include software and databases, entertainment, literary or artistic originals, and the results from mineral exploration.) The information below briefly covers selected international statistical manuals.

  • OECD Handbook on Deriving Capital Measures of Intellectual Property Products, 2010

This handbook uses the SNA 2008 R&D definition (10.103) and describes domestic R&D output for purposes of national and international economic accounts in terms of three components consistent with both the SNA and Frascati: own account R&D (R&D conducted and used internally regardless of funding source); custom R&D (R&D conducted for, and funded by, another unit); and speculative or non-customized R&D.

  • Balance of Payments and International Investment Position Manual, 6th ed., 2009 (BPM6)

The manual covers accounting and statistical standards to compile the balance of payments (BOP), a statement that summarizes economic transactions—including R&D and other IPP— between residents and nonresidents (BPM6 2.2(b)). BPM6 incorporated R&D as an intellectual property product within the balance of payments (see BPM6 Table 10.4 and related text).

  • OECD Benchmark Definition of Foreign Direct Investment (FDI), 4th ed., 2008

This guidance describes definitions and measurement procedures for FDI flows and stocks consistent with the Balance of Payments and International Investment Position Manual. It also covers definitions of activities of multinational enterprises (MNEs) (AMNE for short) including sales, value added, employment, R&D, and international trade. For related definitions, see Statistics on the Activities of Multinational Enterprises, Chapter 12 in U.S. International Economic Accounts: Concepts & Methods, U.S. Bureau of Economic Analysis, 2014.

  • Manual on Statistics of International Trade in Services (MSITS), 2010

This manual covers statistics on international supply of services, including R&D services as defined in MSITS paragraph 3.234.

3.234. Research and development services covers those services that are associated with basic research, applied research and experimental development of new products and processes and covers activities in the physical sciences, the social sciences and the humanities.

  • Guide to Measuring Global Production, 2015

This manual further elaborates on measurement issues from GVCs and related global manufacturing arrangements and transactions, including exchanges of R&D and other intangibles or intellectual property products. See especially chapter 4 (Ownership of intellectual property products inside global production).

OCED, Frascati Manual , 7th ed, “Measurement of R&D Globalisation,” chapter 11. Available at http://oe.cd/frascati .

International Monetary Fund (IMF). 2009. Balance of Payments and International Investment Position Manual , 6th ed. (BPM6). Washington, D.C. Available at https://www.imf.org/external/pubs/ft/bop/2007/pdf/BPM6.pdf.

Organisation for Economic Cooperation and Development (OECD). 2015. Frascati Manual 2015: Guidelines for Collecting and Reporting Data on Research and Experimental Development , 7th ed. Paris, France. Available at http://oe.cd/frascati and https://www.oecd.org/publications/frascati-manual-2015-9789264239012-en.htm .

Organisation for Economic Cooperation and Development (OECD). 2010. Handbook on Deriving Capital Measures of Intellectual Property Products (IPP Handbook). Paris, France. Available at http://www.oecd.org/std/na/44312350.pdf .

Organisation for Economic Cooperation and Development (OECD). 2008. OECD Benchmark Definition of Foreign Direct Investment, 4th ed. Paris, France. Available at https://www.oecd.org/daf/inv/investmentstatisticsandanalysis/40193734.pdf.

United Nations Economic Commission for Europe, Organisation for Economic Cooperation and Development (UNECE/OECD). 2015. Guide to Measuring Global Production . Geneva, Switzerland. Available at http://www.unece.org/info/media/news/statistics/2016/unece-provides-practical-guidance-on- measuring-global-production/doc.html .

European Commission, International Monetary Fund, Organisation for Economic Co-operation and Development, United Nations, and World Bank. 2009. System of National Accounts 2008 (SNA). New York, NY. Available at http://unstats.un.org/unsd/nationalaccount/sna2008.asp .

United Nations, Eurostat, International Monetary Fund, Organisation for Economic Co-operation and Development, United Nations Conference on Trade and Development, World Tourism Organization, World Trade Organization 2011. Manual on Statistics of International Trade in Services 2010 (MSITS). Geneva, Switzerland. Available at http://unstats.un.org/unsd/tradeserv/TFSITS/manual.htm .

Report Authors

Francisco Moris Senior Analyst Research and Development Statistics Program, NCSES Tel: (703) 292-4678 E-mail: [email protected]

Christopher Pece Survey Manager Research and Development Statistics Program, NCSES Tel: (703) 292-7788 E-mail: [email protected]

National Center for Science and Engineering Statistics Directorate for Social, Behavioral and Economic Sciences National Science Foundation 2415 Eisenhower Avenue, Suite W14200 Alexandria, VA 22314 Tel: (703) 292-8780 FIRS: (800) 877-8339 TDD: (800) 281-8749 E-mail: [email protected]

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  1. PDF A GUIDE TO RESEARCH DEVELOPMENT

    developing the initial research proposal. In 2018, the United States government spent $142.9 billion funding research and. development activities.1 This funding makes up only a portion of the overall research. enterprise in the U.S., as funded research dollars also come from private and non-profit.

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    A Short History of Research and Development as Categories. Benoît Godin 385 rue Sherbrooke Est Montreal, Quebec Canada H2X 1E3. [email protected]. Joseph Lane Center for Assistive Technology School of Public Health and Health Professions SUNY, Buffalo. [email protected].

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    KEY TAKEAWAYS. R&D refers to two intertwined processes of research (to identify new facts and ideas) and development (turning the ideas into tangible products and services.) Companies undertake R&D to get a pipeline of new products. Breakthrough innovations can create whole new industries, which can provide thousands of jobs.

  6. (Pdf) What Is Research Development?

    communicating with a broad au dience: Research Development is a function that seeks to grow. research or increas e the research rep utation of an i nstitution. The authors find this description. 1 ...

  7. PDF Eie 510 Lecture Notes Research Methodology

    subdivided into three categories: Pure research, Applied research, and Development activities. Pure or Basic Research Pure (or basic) research is directed at understanding what something is or how it works. There is no immediate expectation of a short-term payoff. Basically, pure research is an attempt to satisfy our

  8. PDF Unit: 01 Research: Meaning, Types, Scope and Significance

    Understand research design and the process of research design. Formulate a research problem and state it as a hypothesis. 1.3 MEANING OF RESEARCH Research is a process to discover new knowledge to find answers to a question. The word research has two parts re (again) and search (find) which denote that we are taking up an

  9. Research and Development (R&D): Definition and Types

    3 types of R&D. Here are the three main types of research and development: 1. Basic research. When the team conducts basic research, sometimes known as pure or fundamental research, they often focus on learning as much about a subject as possible without having a practical use for it. This type of research allows teams to have a more thorough ...

  10. Research and development

    Cycle of research and development Spending on research and development as share of GDP (2015). Research and development (R&D or R+D) [1] is the set of innovative activities undertaken by corporations or governments in developing new services or products. [2] [3] [4] R&D constitutes the first stage of development of a potential new service or the production process.

  11. Research and Development: R&D Guide

    Research and development is a high-cost, high-risk necessity. Without it, business, technology, medicine and society wouldn't be where they are today. ... Note that competitive businesses can strategically manage this process to protect their intellectual property; it's possible to share outcomes in ways that demonstrate value without ...

  12. Research and Development: What It Is and When To Use It

    Research and development (R&D) is an important part of the product development process of a business. It is a common method used by businesses and corporations to come up with new ideas to find a competitive edge in the market. It is a process that allows them to uncover innovative knowledge, whether it is about their customer or the products ...

  13. What Is Research and Development (R&D)? Definition and Guide

    Research and Development is a systematic activity that companies undertake to innovate and introduce new products and services or to improve their existing offerings. Many people think of pharmaceutical and technology companies when they hear "R&D," but other firms, including those that produce consumer products, invest time and resources ...

  14. PDF HOW TO WRITE A CONCEPT NOTE

    Defining a Concept Note •A concept note is a brief document that presents brief summary of the proposed research. •It is a pre-proposal document with no more than three pages (preferably two pages). •This documents presents key details about the research, such as: •the rationale •research question •aim and objections •methodology

  15. Research Process Steps: What they are + How To Follow

    Step 1: Identify the Problem. Finding an issue or formulating a research question is the first step. A well-defined research problem will guide the researcher through all stages of the research process, from setting objectives to choosing a technique. There are a number of approaches to get insight into a topic and gain a better understanding ...

  16. What Is a Research Design

    Step 1: Consider your aims and approach. Step 2: Choose a type of research design. Step 3: Identify your population and sampling method. Step 4: Choose your data collection methods. Step 5: Plan your data collection procedures. Step 6: Decide on your data analysis strategies. Other interesting articles.

  17. research and development

    The concept of research is as old as science; the concept of the intimate relationship between research and subsequent development, however, was not generally recognized until the 1950s. Research and development is the beginning of most systems of industrial production. The innovations that result in new products and new processes usually have ...

  18. A Beginner's Guide to Starting the Research Process

    Step 1: Choose your topic. First you have to come up with some ideas. Your thesis or dissertation topic can start out very broad. Think about the general area or field you're interested in—maybe you already have specific research interests based on classes you've taken, or maybe you had to consider your topic when applying to graduate school and writing a statement of purpose.

  19. PDF Concepts and definitions for identifying R&D

    for interpreting r&d data as part of the development, implementation and evaluation of policy. however, users should note that the focus of this chapter is on definitions for measurement purposes. 2.2. Definition of research and experimental development (R&D) 2.5 Research and experimental development (R&D) comprise creative

  20. (Pdf) a Guide to Research Writing

    BookPDF Available. A GUIDE TO RESEARCH WRITING. May 2019. Publisher: paperback. ISBN: 9781099092008. Authors: David Annan. Swiss School Of Business and Management Geneva. Citations (3)

  21. Definitions of Research and Development: An Annotated Compilation of

    This document provides definitions of research and development from U.S. and international sources. The first section (I) presents statistical definitions of R&D from the Organisation for Economic Co-operation and Development (OECD) Frascati Manual 2015: Guidelines for Collecting and Reporting Data on Research and Experimental Development. The next three sections are organized by sectors of ...

  22. PDF Definitions of Research and Development: An Annotated Compilation of

    Examples of Activities Typically Included in Research and Development 55-1. The following activities typically would be considered research and development within the scope of this Topic (unless conducted for others under a contractual arrangement [See NOTES below]): a. Laboratory research aimed at discovery of new knowledge b.

  23. PDF A Short Note on Scientific Research Methodologies

    A Short Note on Scientific Research Methodologies ... Scientific research methodologies are critical to the advancement of scientific knowledge and the development of ... research, case study ...