Definition:
This indicator is defined as the total intramural expenditure on research and experimental development (R&D) performed in the national territory during a specific reference period expressed as a percentage of national gross domestic product (GDP).
Concepts:
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.
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.
R&D expenditure or in other words Gross domestic expenditure on R&D (GERD) is total intramural expenditure on R&D performed in the national territory during a specific reference period. It covers all expenditure for R&D performed in the economy, including both current costs and capital expenditures for R&D.
For further information on above definitions, see: OECD (2015). Frascati Manual. 7th Edition.
GDP is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products.
Rationale and Interpretation:
This indicator is a direct measure of the R&D spending, which is to be increased as per target 9.5.
