Definition of R&D

According to the Frascati Manual, scientific and technological innovation may be considered as the transformation of an idea into a new or improved saleable product or operational process in industry and commerce or into a new approach to a social service.  It thus consists of all those scientific, technical, commercial and financial steps necessary for the successful development and marketing of new or improved manufactured products, the commercial use of new or improved processes and equipment or the introduction of a new approach to a social service.  R&D is only one of these steps. In science we deal with the natural and engineering sciences and with the social sciences and humanities.

Research and experimental development (R&D) comprise of creative work undertaken on a systematic basis in order to increase and refresh the stock of knowledge and competence, including the knowledge of man, culture and society and the use of this supply of knowledge and competence to devise new applications, and new methods of working and delivering.
R&D activities comprise of three main types: basic research, applied research and experimental development.