State of the Nation 2010


Definitions: Research and Development Innovation

The Frascati Manual (2002) is the basis for the Organisation for Economic Co-operation and Development (OECD) definition of research and development, which is said to encompass three 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. It is, however, 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, which is directed to producing new materials, products or devices, to installing new processes, systems and services, or to improving substantially those already produced or installed."

The Oslo Manual (2005) is the basis for the OECD definition of innovation: "the implementation of a new or significantly improved product (good or service), or process, a new marketing method, or a new organizational method in business practices, workplace organization or external relations."

The Science, Technology and Innovation Council defined innovation in the State of the Nation 2008 report as "the process by which individuals, companies and organizations develop, master and use new products, designs, processes and business methods. These can be new to them, if not to their sector, their nation or to the world. The components of innovation include research and development, invention, capital investment and training and development."