Research and development spending

Methodology: This indicator is calculated by dividing the total domestic intramural expenditure on R&D for a given year by the gross domestic product (GDP) — defined as the sum of gross value added by all resident producers in the economy, including distributive trades and transport, plus any product taxes and minus any subsidies not included in the value of the products — and multiplying the result by 100. Gross domestic expenditure on R&D (GERD) as a percentage of GDP (SDG Indicator 9.5.1) is the total intramural expenditure on R&D performed in the national territory during a specific reference period, expressed as a percentage of GDP of the national territory. Intramural R&D expenditures encompass all current expenditures plus gross fixed capital expenditures for R&D performed within a statistical unit during a specific reference period, regardless of the source of funds. The summation of intramural R&D expenditures across all sectors of the economy is equivalent to GERD. Data are collected through national research and experimental development (R&D) surveys, either by the national statistical office or a line ministry (such as the Ministry for Science and Technology). The data compilers are the UNESCO Institute for Statistics (UIS), Organisation for Economic Co-operation and Development (OECD), Eurostat (Statistical Office of the European Union) and the Network on Science and Technology Indicators – Ibero-American and Inter-American (RICYT), African Science, Technology and Innovation (STI) Indicators Initiative (ASTII) of the African Union Development Agency-NEPAD (AUDA-NEPAD). Statistical concept(s): The gross domestic expenditure on R&D indicator consists of the total expenditure (current and capital) on R&D by all resident companies, research institutes, university and government laboratories, etc. It excludes R&D expenditures financed by domestic firms but performed abroad. The OECD's Frascati Manual defines research and experimental development as "creative work undertaken on a systemic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications." R&D covers basic research, applied research, and experimental development. (1) Basic research - 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 (2) Applied research - 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. (3) Experimental development - 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 fields of science and technology used to classify R&D according to the Revised Fields of Science and Technology Classification are: 1. Natural sciences; 2. Engineering and technology; 3. Medical and health sciences; 4. Agricultural sciences; 5. Social sciences; 6. Humanities and the arts. The data are obtained through statistical surveys which are regularly conducted at national level covering R&D performing entities in the private and public sectors.