Research and experimental development (R&D) comprises creative work undertaken on a systematic basis in order to increase the stock of human knowledge and to devise new applications based upon it.

A set of common features identifies R&D activities, even if these are carried out by different performers. R&D activities may be aimed at achieving either specific or general objectives. R&D is always aimed at new findings, based on original concepts (and their interpretation) or hypotheses. It is largely uncertain about its final outcome (or at least about the quantity of time and resources needed to achieve it), it is planned for and budgeted (even when carried out by individuals), and it is aimed at producing results that could be either freely transferred or traded in a marketplace. For an activity to be an R&D activity, it must satisfy five core criteria.
The activity must be:
• novel
• creative
• uncertain
• systematic
• transferable and/or reproducible

Source: Frascati manual 2025, OECD 2015

Definitions:

• GERD measure gross domestic expenditure on R&D, which covers all expenditures for R&D performed in the economy during a specific reference period is the principal R&D indicator at country level. GERD, and the GERD/GDP ratio, are used for international comparisons.
• Nominal GDP measures the monetary value of the production of goods and services in a certain period of time. The production includes the use of materials, labour and capital equipment, and the product of these factors are goods and services. Nominal GDP means that GDP is measured in the current market prices in a given period of time.