Definition of Research & Development
Research and Development, or R&D, is a term frequently used in business. Generally speaking, R&D refers to work carried out to address a technical problem or test a scientific hypothesis that cannot be resolved with current knowledge. By its very nature, R&D is uncertain, requires the removal of a technical or fundamental obstacle, and relies on an experimental approach to obtain reproducible results.
There are 3 types of R&D:
- Fundamental research, i.e. experimental or theoretical work aimed at acquiring scientific knowledge with no specific a priori application or use.
- Applied research, similar but with a concrete application or use in mind.
- Experimental development, which concerns the development of new processes, systems or products based on knowledge gained from research – whether fundamental or applied.
R&D costs are a major expense for companies and public authorities. In France, it represents a volume of 55.5 billion euros in 2021, or around 2.2% of GDP. On an EU scale, France is on a par with the 27-nation average, but lags far behind Sweden (3.4%), Germany (3.15%) or Austria (=).