Print this chapter (2.2MB)
Affiliate: A company or business enterprise located in one country but owned or controlled (10% or more of voting securities or equivalent) by a parent company in another country; may be either incorporated or unincorporated.
Applied research: Research aimed at gaining the knowledge or understanding to meet a specific, recognized need; in industry, applied research includes investigations to discover new scientific knowledge that has specific commercial objectives with respect to products, processes, or services.
Development: Systematic use of the knowledge or understanding gained from research directed toward the production of useful materials, devices, systems, or methods, including the design and development of prototypes and processes.
Federally funded research and development center: R&D-performing organizations exclusively or substantially financed by the federal government either to meet a particular R&D objectives or, in some instances, to provide major facilities at universities for research and associated training purposes; each FFRDC is administered either by an industrial firm, a university, or a nonprofit institution.
General university fund (GUF): block grants provided by all levels of government in Europe, Canada, and Japan to the academic sector that can be used to support departmental R&D programs that are not separately budgeted; the U.S. federal government does not provide research support through a GUF equivalent.
Public-private partnership: Type of industrial technology linkage involving at least one public or nonprofit organization such as a university, research institute, or government laboratory; such a partnership may engage in technology codevelopment or cooperative R&D, technology transfer, technology assistance, joint or grant funding, or public procurement and may take the form of a cooperative agreement, grant or procurement programs, professional or student internship or exchange, technology-based business incubator, or research and science parks.
R&D: According to the Organisation for Economic Co-operation and Development, creative work "undertaken on a systematic basis 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."
Research and experimental expenditures: Experimental or laboratory costs aimed at the development or improvement of a product (defined to include any pilot model, process, formula, or technique) in connection with a taxpayer's business.