Eligible R&D activities include:
- Basic research – work undertaken in order to advance
scientific knowledge without a specific practical application
in view;
- Applied research – work undertaken for advancement
of scientific knowledge with a specific practical application
in view; and
- Experimental development –
work undertaken to achieve technical advances for
the purpose of creating new, or improving existing
materials, devices, products or processes.
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Support work is also eligible where it is directly in support
of eligible activities. Support work must involve engineering,
design, operations research, mathematical analysis, computer
programming, data collection, testing or psychological research.
R&D does not include work in connection with market research,
quality control, routine testing, work in the social sciences
or commercial production.
An activity will generally qualify as eligible R&D if
all three of the following conditions are met:
The work must generate information that advances technology.
In a business context, a new or improved product or process
must embody a technical advancement. Generally speaking, the
product, material or process must not be commercially available
to persons knowledgeable in the particular field of technology.
Incremental advances qualify.
The work must involve technical uncertainties. These uncertainties
occur in one of two ways;
(i) it may be uncertain as
to whether the technical goals themselves can be
achieved; or
(ii) there may be a number of alternatives
(approaches, paths, techniques) to
achieve the goals but it is unclear as to which one will work
or yield the
best result.
The project must involve a systematic investigation including
testing and analysis. The results of the work need to be identified
and quantified. The work must be carried out by qualified
personnel with appropriate experience in the particular field
of technology. |
