1.3. WHAT IS RESEARCH AND DEVELOPMENT?

The National Science Foundation (NSF) classifies and defines research as follows (Science and Engineering Indicators, 2008):

Basic Research. Basic research has as its objective "a more complete knowledge or understanding of the subject under study, without specific applications in mind." To take into account industrial goals, NSF modifies this definition for the industry sector to indicate that basic research advances scientific knowledge "but does not have specific immediate commercial objectives, although it may be in fields of present or potential commercial interest."

Applied Research. Applied research is directed toward gaining "knowledge or understanding to determine the means by which a specific, recognized need may be met." In industry, applied research includes investigations directed "to discovering new scientific knowledge that has specific commercial objectives with respect to products, processes, or services."

Development. Development is the "systematic use of the knowledge or understanding gained from research, directed toward the production of useful materials, devices, systems or methods, including design and development of prototypes and processes."

In its publication The Measurement of Scientific and Technical Activities (1993), the Organization for Economic Co-operation and Development (OECD) defines some research activities as follows:

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. Basic research analyzes properties, structures, and relationships with a view to formulating and testing hypotheses, theories or laws. The results of basic research are not generally sold but are usually published in scientific journals or circulated to interested colleagues. Pure basic research is carried out for the advancement of knowledge, without working for 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 applications. Oriented 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 recognized or expected current or future problems or possibilities. Applied research is also original investigation undertaken in order to acquire new knowledge. It is, however, directed primarily towards a specific practical aim or objective. Applied research develops ideas into operational form. Experimental development is systematic work, drawing on existing knowledge gained from research and 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.

Research and development covers many of these activities. The OECD defines R&D as "creative work undertaken on a systematic basis in order to increase the stock of knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications."

In order to provide functional and understandable definitions for various research activities, Science Indicators categorizes R&D activities as efforts in science and engineering as follows:

• Producing significant advances across the broad front of understanding of natural and social phenomena—basic research

• Fostering inventive activity to produce technological advances—applied research and development

• Combining understanding and invention in the form of socially useful and affordable products and processes—innovation

Many United States governmental agencies have categorized research and development activities to provide a better focus on these activities and, ostensibly, to facilitate technology transfer. One such categorization for the U.S. Department of Defense (DOD) is depicted in Table 1.2. Since DOD accounts for approximately 60 percent of the federal government's R&D expenditures, some understanding of its research program categorization would be helpful to those seeking research support from the DOD.