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1. Four types of activity applicable to R&D are recognised in this classification:
2. Pure basic research is experimental and theoretical work undertaken to acquire new knowledge without looking for long term benefits other than the advancement of knowledge.
3. Strategic basic research is experimental and theoretical work undertaken to acquire new knowledge directed into specified broad areas in the expectation of useful discoveries. It provides the broad base of knowledge necessary for the solution of recognised practical problems.
4. Applied research is original work undertaken primarily to acquire new knowledge with a specific application in view. It is undertaken either to determine possible uses for the findings of basic research or to determine new ways of achieving some specific and predetermined objectives.
5. Experimental development is systematic work, using existing knowledge gained from research or practical experience, that 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.
Guidelines for classifying R&D by TOA
6. A Research Project is normally to be classified under only one type of activity. However, there are instances where a research project is large and could potentially be classifiable to more than one type, i.e. a project could have sub-projects with elements of both applied and experimental research. In this case, the proportion of resources attributable to each should be allocated to each type.