Research and Development Expenditures
Includes expenditures for the following: (1) The planned, systematic pursuit of new knowledge or understanding toward general application (basic research); (2) the acquisition of knowledge or understanding to meet a specific, recognized need (applied research); and (3) the application of knowledge or understanding toward the production or improvement of a product, service, process, or method (development).It excludes quality control, routine product testing, market research, sales promotion, sales service, and other nontechnical activities; routine technical services; and research in the social sciences or psychology. Note that there are discontinuities in the time series which begin in 1997 for foreign direct investment in the United States and in 1989 for U.S. direct investment abroad: The estimates for these years and later years measure R&D performed by the firm , either for itself or for others under contract; the estimates for earlier years measure R&D performed for the firm.