Glossary:Boundaries of R & D

From Statistics Explained

To determine whether or not a particular activity falls within or outside the boundaries of R & D, the following criteria are used:

  • if the primary objective is to make further technical improvements on the product or process, then the work comes within the definition of research and development (R & D);
  • if, on the other hand, the product, process or approach is substantially set and the primary objective is to develop markets, to do pre-production planning or to get a production or control system working smoothly, the work is no longer considered to be R & D.

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