Research and Experimental Development (R&D) is often associated with laboratories, scientists, or dedicated research teams, but in reality, innovation activity occurs across many different parts of modern organisations. Engineers, software developers, operations teams, manufacturing specialists, product managers, and technical leadership teams may all contribute to solving technological challenges, developing new capabilities, and advancing products or processes.
Understanding who performs R&D and what qualifies as experimental development is critical for organisations seeking to improve innovation management.
Different types of Research & Experimental Development (or R&D) is carried out by companies, universities, RPOs (research performing organisations), institutes of technology and others.
According to the OECD’s Frascati Manual, the definition of R&D is outlined below:
This definition is broad and covers a vast range of R&D that takes place across many different types of organisations.
Universities (generally) carry out basic, blue skies research. Applied research organisations (such as the Fraunhofer Gesellschaft in Germany) try and bring an area of science to a more practical application (otherwise known as Applied Research). Experimental Development (a sub-section of Applied Research) is generally carried out by companies.
So how do you categorize or classify the different work that these different R&D bodies are performing? The internationally recognized methodology for classifying such work is known as the Technology Readiness level (TRL) scale.