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Research and Development
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November 2003
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R&D is defined in terms of research and experimental development. Research is further divided into basic and applied research. R&D covers the following related activities.

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

* Applied Research is also original investigation undertaken in order to acquire new knowledge, but directed primarily towards a specific practical aim or objective.

* Experimental Development is systematic work, drawing on existing knowledge gained from research and/or practical experience, that is directed to producing new materials, products and devices; to installing new processes, systems and services; or to improving substantially those already produced or installed which will lead to an extension of knowledge.

The following activities are subsections of basic research.

* Pure-basic Research is defined as the advancement of knowledge without explicit orientation to long-term economic or social benefits and with no positive efforts being made to apply the results to practical problems or to transfer the results to sectors responsible for its application.

* Orientated-basic Research is carried out with the expectation that it will produce a broad base of knowledge likely to form the background to the solution of recognised or expected current or future (practical) problems or possibilities.

Importantly Research and experimental development is distinguished from other related activities by the presence of an appreciable element of novelty and the resolution of scientific and/ or technological uncertainty, that is, where the solution to a problem is not readily apparent to someone familiar with the basic stock of commonly used knowledge and techniques in the area concerned. This in particular highlights the distinction between Research and Development and technology transfer.