,canada ,cu/oms & ,rev5ue ,ag5cy ,9=m,n ,circul> ,,ic#hf-d;,r#c ,sci5tific ,rese>* & ,exp]i;tal ,develop;t ,9 ,"o ,volume ,pr9t pages #a-ae ,brl pages ;i & #a-gh ,9dex ,brl page ,9=m,n ,circul> """"""""""""""""""""" #a ,3t5ts """""""""""""""""""""""""""""" #a #a ,9troduc;n """"""""""""""""""""""" #b #b ,g5]al ,3sid],ns 9 ,id5tify+ ,eligi# ,activities """"""""""""" #e #c ,require;ts = ,sci5tific & ,te*nical ,3t5t & ,docu;t,n """" #ag #d ,"*i/ics ( ,exp]i;tal ,develop;t """"""""""""""""""""" #ah #e ,id5tify+ ,eligi# ,activities ,associat$ ,) ,collect+ ,data "" #be #f ,crit]ia = ,id5tify+ ,eligi# ,activities 9 ,-put] ,sci;e & ,associat$ ,te*nologies """""""" #ca #g ,3sid],ns 9 ,det]m9+ ,:5 an ,exp]i;tal ,develop;t ,project is ,-plete """"""""""""""""""""" #da #h ,adm9i/rative ,-;ts """"""""""""" #ej ,9dex """""""""""""""""""""""""""""" #ed ,gloss>y """"""""""""""""""""""""""" #fd ;i ,canada ,cu/oms #a & ,rev5ue ,ag5cy ,9=m,n ,circul> ,numb]3 #hf-d;,r#c ,date3 ,may #bd1 #aiid ,subject3 ,sci5tific ,rese>* & ,exp]i;tal ,develop;t ,? circul> replaces & c.els ,9=m,n ,circul> #hf-d;,r#b1 dat$ ,augu/ #bi1 #aihh4 ,3t5ts #a ,9troduc;n """"""""""""""""""""""" #a #b ,g5]al ,3sid],ns 9 ,id5tify+ ,eligi# ,activities """"""""""""""" #a #c ,require;ts = ,sci5tific & ,te*nical ,3t5t & ,docu;t,n """"""" #d #d ,"*i/ics ( ,exp]i;tal ,develop;t """""""""""""""""""""""" #d #a ,3t5ts a#a #e ,id5tify+ ,eligi# ,activities ,associat$ ,) ,collect+ ,data """"" #e #f ,crit]ia = ,id5tify+ ,eligi# ,activities 9 ,-put] ,sci;e & ,associat$ ,te*nologies """"""""""" #f #g ,3sid],ns 9 ,det]m9+ ,:5 an ,exp]i;tal ,develop;t ,project is ,-plete """""""""""""""""""""""" #h #h ,adm9i/rative ,-;ts """""""""""""" #i ,9dex """""""""""""""""""""""""""""" #aa ,gloss>y """"""""""""""""""""""""""" #ac #a ,9troduc;n #a.a ,! purpose ( ^! te*nical guidel9es is 6cl>ify :at 3/itutes sci5tific rese>* & exp]i;tal develop;t ac 6! ,9come ,tax ,regul,ns1 z set \ 9 subsec;n #bijj7#a7 (! ,regul,ns4 #a.b ,"p #b ( ? circul> provides ! key 6id5tify+ eligi# sci5tific rese>* & exp]i;tal develop;t activities 9 all >1s specifi$ 9 subsec;n #bijj7#a7 (! #b #a ,9troduc;n b#a ,regul,ns3 i4e41 basic rese>*1 appli$ rese>*1 & exp]i;tal develop;t4 #a.c ,"ps #c 6#g ( ? circul> fur!r cl>ify ! te*nical aspects ( \r 9t]pret,n ( subsec;n #bijj7#a7 (! ,regul,ns4 ,!y al \tl9e ! key "*i/ics ( eligi# v]sus 9eligi# activities z foll[s3 ,"p #c--,require;ts = sci5tific & te*nical 3t5t & docu;t,n ,"p #d--,"*i/ics ( exp]i;tal develop;t ,"p #e--,id5tify+ eligi# activities associat$ ) collect+ data ,"p #f--,id5tify+ eligi# activities 9 ! fields ( -put] sci;e & associat$ te*nologies ,"p #g--,det]m9+ :5 an exp]i;tal develop;t project is -plete #a.d ,! t]m 8exp]i;tal develop;t0 0 a4$ 6! descrip;n (! relevant sec;ns (! ,9come ,tax ,act 9 ,may #aihe4 ,^! sec;ns n[ ref] to 8sci5tific rese>* & exp]i;tal develop;t0 r ?an simply to 8sci5tific rese>*40 ,! ,may #aihe #c #a ,9troduc;n c#a ,budget ,pap]s issu$ 0! ,de"p;t ( ,f9.e ,canada /at$ t ! phrase 8exp]i;tal develop;t0 0 m1nt 63firm t 8projects 9volv+ only r\t9e 5g9e]+ or r\t9e develop;t0 wd 2 exclud$4 8,exp]i;tal develop;t0 is ?us set \ z an aspect (! m g5]al 3cept ( 8develop;t40 ,only develop;t activities associat$ ) 8exp]i;tal develop;t0 >e eligi#4 #a.e ..,? circul> exam9es only ! te*nical .issues 9volv$ 9 "*iz+ eligi# sci5tific rese>* & exp]i;tal develop;t activities4 ,judge;ts on te*nical matt]s require ! op9ions ( sci5ti/s1 5g9e]s1 & o!r te*nical exp]ts4 ,"!=e1 we h direct$ ? circul> 6te*nic,y tra9$ 9dividuals :o h 6id5tify activities t >e eligi#4 ,! curr5t v].n ( ,,it-#aea1 ,sci5tific ,rese>* & ,exp]i;tal ,develop;t ,exp5ditures1 expla9s h[ 6id5tify qualify+ exp5ditures4 #a.f ,"p #h d1ls ) adm9i/rative matt]s1 & is foll[$ 0an 9dex &a gloss>y4 #d #b ,g5]al ,3sid],ns 9 d#a ,id5tify+ ,eligi# ,activities #b.a ,ultimately1 ! "q ( :at 3/itutes sci5tific rese>* & exp]i;tal develop;t = purposes (! ,9come ,tax ,act c only 2 resolv$ 0ref]r+ 6! facts ( ea* case4 #b.b ,/atutory & g5]al def9i;ns --------------------------------------#b #b.c ,sci;e is a bran* ( /udy 9 : ph5om5a >e obs]v$ & classifi$ &1 usu,y1 9 : quantitative & qualitative rel,ns >e =mulat$ & v]ifi$4 ,subsec;n #bijj7#a7 (! ,regul,ns def9es sci5tific rese>* & exp]i;tal develop;t 7,,sr&,,ed7 z requir+ a 8sy/ematic 9ve/ig,n or se>* c>ri$ \ 9 a field ( sci;e or te*nology "? exp]i;t or analysis40 ,"h1 te*nology ref]s 6! sy/ematic /udy (! applic,n ( sci5tific k 69du/rial processes or product develop;t4 #b.d ,subsec;n #bijj7#a7 (! ,regul,ns goes on 6def9e ! foll[+ categories ( #e #b ,g5]al 3sid],ns a#b sci5tific rese>* & exp]i;tal develop;t3 7a7 basic rese>*1 "nly1 "w "utak5 6adv.e sci5tific k )\t a specific practical applic,n 9 view2 7b7 appli$ rese>*1 "nly1 "w "utak5 6adv.e sci5tific k )a specific practical applic,n 9 view2 99 7c7 exp]i;tal develop;t1 "nly1 "w "utak5 6a*ieve te*nological adv.es =! purpose ( cr1t+ new1 or improv+ exi/+1 mat]ials1 devices1 products1 or processes1 9clud+ 9cre;tal improve;ts "!to1 or 99 7d7 "w ) respect 65g9e]+1 design1 op],ns rese>*1 ma!matical analysis1 -put] programm+1 data collec;n1 te/+1 & psy*ological rese>*1 ": s* "w is -m5surate )! ne$s1 & directly 9 support (! "w describ$ 9 p>agraphs 7a71 7b71 or 7c7 abv4 #f #b ,g5]al 3sid],ns b#b 99 ,note3 ,*anges 6"p c7 &! a4i;n ( "p d7 abv 6! def9i;n ( ,,sr&,,ed reflect ! draft am5d;t 6subsec;n #bijj7#a7 (! ,regul,ns ann\nc$ 9 ,decemb] #aiib1 : has yet 6be promulgat$4 #b.e ,subsec;n #bijj7#a7 (! ,regul,ns fur!r /ates t ,,sr&,,ed does n 9clude "w =3 --m>ket rese>* or sales promo;n2 --qual;y 3trol or r\t9e te/+ ( mat]ials1 devices1 products1 or processes2 --rese>* 9 ! social sci;es or ! humanities2 --prospect+1 explor+1 or drill+ = or produc+ m9]als1 petroleum1 or natural gas2 --! -m]cial produc;n (a new or improv$ mat]ial1 device1 or product1 or ! -m]cial use (a new or improv$ process2 #g #b ,g5]al 3sid],ns c#b --/yle *anges2 & --r\t9e data collec;n4 #b.f ,major issues #b.g ,two major issues 9 def9+ sci5tific rese>* & exp]i;tal develop;t >e3 --h[ 64t+ui% 2t eligi# activities t adv.e sci5tific or te*nological k & exclude activities t >e 8r\t9e 5g9e]+ or r\t9e develop;t02 & --h[ 64t+ui% eligi# exp]i;tal develop;t activities f 9eligi# -m]cial activities4 #b.h ,we det]m9e :e!r an activ;y is eligi# or 9eligi# "u subsec;n #bijj7#a7 (! ,regul,ns solely 0exam9+ ! nature & "*i/ics (! activ;y xf4 ,9 o!r ^ws1 x is n ! ov]all purpose (! activ;y or program1 b r :at is actu,y o3urr+ at a te*nical level t is relevant4 ,? is an important po9t 2c ! 9t5t ( all develop;t 9 a busi;s 3text is 6produce via# products or processes4 ,?us ! key po9t relat+ #h #b ,g5]al 3sid],ns d#b 6! ,act & ,regul,ns is :e!r or n an activ;y has ! "*i/ics ( an eligi# sci5tific rese>* & exp]i;tal develop;t activ;y1 & n ! ov]all goals 9 a -m]cial s5se4 #b.i ,g5]al crit]ia #b.aj ,ess5tial te/s t m/ 2 met 2f any activ;y c 2 3sid]$ sci5tific rese>* & exp]i;tal develop;t 9clude ! crit]ion ( sci5tific or te*nological adv.e;t2 ! crit]ion ( sci5tific or te*nological unc]ta9ty2 &! crit]ion ( sci5tific & te*nical 3t5t4 #b.aj.a ,! ..crit]ion ( sci5tific or te*nological .adv.e;t is z foll[s3 --,! se>* c>ri$ \ 9 ! sci5tific rese>* & exp]i;tal develop;t activ;y m/ g5]ate 9=m,n t adv.es \r "u/&+ ( sci5tific rel,ns or te*nologies4 ,9 a busi;s 3text1 ? m1ns t :5 a new or improv$ product or process is cr1t$1 x m/ embody a sci5tific or te*nological adv.e;t 9 ord] 6be eligi#4 #i #b ,g5]al 3sid],ns e#b #b.aj.b ,! ..crit]ion ( sci5tific or te*nological .unc]ta9ty is z foll[s3 --,:e!r or n a giv5 result or objective c 2 a*iev$1 &/or h[ 6a*ieve x1 is n "kn or det]m9$ on ! basis ( g5],y availa# sci5tific or te*nological k or exp]i;e4 ,? crit]ion implies t we _c "k ! \tcome (a project1 or ! r\te 0: x w 2 c>ri$ \ )\t remov+ ! te*nological or sci5tific unc]ta9ty "? a program ( sci5tific rese>* or exp]i;tal develop;t4 ,specific,y1 sci5tific or te*nological unc]ta9ty may o3ur 9 ei ( two ways3 --x may 2 unc]ta9 :e!r ! goals c 2 a*iev$ at all2 or --------------------------------------#c --! taxpay] may 2 fairly 3fid5t t ! goals c 2 a*iev$1 b may 2 unc]ta9 : ( s"eal alt]natives 7i4e41 pa?s1 r\tes1 approa*es1 equip;t 3figur,ns1 sy/em >*itectures1 circuit te*niques1 etc47 w #aj #b ,g5]al 3sid],ns a#c ei "w at all1 or 2 f1si# 6meet ! desir$ specific,ns or co/ t>gets1 or bo? ( ^!4 --,! sci5tific or te*nological unc]ta9ty1 r ?an ! economic or f9ancial risk1 is important 9 "*iz+ sci5tific rese>* & exp]i;tal develop;t--&1 h;e1 eligi# activities4 --,"s"ts "! is ll d\bt t a product or process c 2 produc$ 6meet te*nological objectives :5 co/ t>gets >e no object4 ,9 -m]cial r1l;y1 h["e1 a r1sona# co/ t>get is alw an objective1 & attempt+ 6a*ieve a "picul> co/ t>get c at "ts cr1te a te*nological *all5ge : ne$s 6be resolv$4 ,a te*nological unc]ta9ty may ?us >ise t is impos$ 0economic 3sid],ns4 ,o!rwise1 ! m g5]al "q (! -m]cial viabil;y (! product or process is n relevant 6:e!r or n a te*nological unc]ta9ty is pres5t &1 #aa #b ,g5]al 3sid],ns b#c h;e1 6:e!r a project is eligi# or 9eligi#4 --,? crit]ion applies equ,y 6"w on new or exi/+ processes or products4 ,! descrip;n ( te*nological unc]ta9ty 3ta9$ 9 ? subsec;n applies :]"e ! text ( ? circul> ref]s 6! crit]ion4 #b.aj.c ,! ..crit]ion ( sci5tific & te*nical .3t5t is z foll[s3 --,! sci5tific rese>* & exp]i;tal develop;t activ;y m/ 9corporate a sy/ematic 9ve/ig,n go+ f hypo!sis =mul,n1 "? te/+ 0exp]i;t,n or analysis1 6! /ate;t ( logical 3clu.ns4 ,s* exp]i;t,n c 9clude "w on ! evolu;n ( prototypes or models4 ,9 a busi;s 3text1 ? m1ns t ! objectives (! sci5tific rese>* & exp]i;tal develop;t projects m/ 2 cle>ly /at$ at an e>ly /age 9 ! project's evolu;n4 ,9 a4i;n1 ! me?od ( exp]i;t,n or analysis 0: ! sci5tific or te*nological unc]ta9ties >e 6be a4ress$ m/ #ab #b ,g5]al 3sid],ns c#c 2 cle>ly set \4 ,f9,y1 ! results (! su3e$+ sci5tific rese>* & exp]i;tal develop;t ef=ts h 6be prop]ly id5tifi$4 ,! ne$ =a sy/ematic program ( 9ve/ig,n does n preclude id1s t result f 9tuitive processes4 ,s* id1s >e hypo!ses1 h["e1 & m/ / 2 te/$ "? a sy/ematic program 2f !y c 2 a3ept$4 --,qualifi$ p]sonnel hav+ relevant exp]i;e 9 sci;e1 te*nology1 or 5g9e]+ >e responsi# = direct+ or p]=m+ ! "w4 #b.aa .,applic,n .( .crit]ia ..,! ?ree crit]ia ( ,,ic #hf-d;,r#c m/ 2 appli$ )9 ! 3text (! taxpay]'s busi;s .5viron;t4 ,sci5tific rese>* & exp]i;tal develop;t v>ies 9 3t5t z well z 9 ! -plex;y (! te*nology 9 a giv5 field4 ,! te*nical unc]ta9ties 5c.t]$ 0"o taxpay] may well 2 look$ ^u z facts easily obta9$ 0ano!r4 ,! judge;t #ac #b ,g5]al 3sid],ns d#c z 6eligibil;y %d 2 made )9 ! 3text & 5viron;t (a s+le -pany & xs field ( busi;s4 ,specific,y1 ! activities "utak5 6resolve te*nical unc]ta9ties >e eligi# if ! taxpay] _c obta9 ! solu;ns "? -monly availa# s\rces ( k & exp]i;e 9 ! busi;s 3text (! firm4 ,we expect t any firm claim+ exp5ditures = sci5tific rese>* & exp]i;tal develop;t activities w h or w a3ess ! exp]tise nec 6c>ry \ a via# program4 #b.ab ,n all ! "w ele;ts 9 a sci5tific rese>* & exp]i;tal develop;t activ;y w 9volve sci5tific or te*nological unc]ta9ty4 ,63=m 6! _s (! legisl,n1 h["e1 ! ov]all activ;y m/ 3ta9 sci5tific or te*nological unc]ta9ties4 ,t is1 ! se>* =a m1n+;l adv.e 9 ! body ( sci5tific or te*nological k %d 2 pres5t z a guid+ ele;t 9 e eligi# project4 ,? require;t is satisfi$ :e!r or n ! activ;y is su3ess;l4 ,9 o!r ^ws1 det]m9+ t a hypo!sis is 9correct #ad #b ,g5]al 3sid],ns e#c al repres5ts a sci5tific or te*nological adv.e4 #b.ac ,! def9i;n ( 8exp]i;tal develop;t0 9 subsec;n #bijj7#a7 (! ,regul,ns requires t "w 2 "utak5 6a*ieve te*nological adv.e;t :5 cr1t+ new1 or :5 sli* & exp]i;tal develop;t1 x m/ 3=m 6! _s (! legisl,n2 t is1 x m/ seek 6adv.e ! taxpay]'s te*nological k base4 ,! te*nological adv.e a*iev$ has only 6be slie 9troduc$ 96products or processes 9 ano!r field ( te*nology4 ,! improve;t ( exi/+ te*nologies or me?odologies us+ well- e/abli%$ 8r\t9e 5g9e]+ or r\t9e #ae #b ,g5]al 3sid],ns f#c develop;t0 wd 2 9eligi# if ! \tcome is predicta#4 ,a /raid design develop;t1 = example1 is n an eligi# activ;y4 ,h["e1 z not$ e>li] 7#b.d;d71 if ! 8r\t9e0 5g9e]+ or 8r\t9e0 develop;t activ;y is c>ri$ \ 9 support ( an eligi# exp]i;tal develop;t project1 !n ! activ;y is eligi#4 #b.ad ,9 summ>y3 ,if ! prim>y objective is 6make fur!r te*nological adv.es 9 ! product or process1 !n ! "w meets ! crit]ia = exp]i;tal develop;t4 ,if1 on ! o!r h&1 ! te*nological "* (! product or process is sub/anti,y set1 &! prim>y objective is 6develop m>kets1 6d preproduc;n activ;y1 or 6get a produc;n or 3trol sy/em "w+ smoo?ly1 !n ! "w no l;g] meets ! crit]ia4 ,h["e1 if te*nological --------------------------------------#d unc]ta9ty exi/s "u ^! circum/.es1 !n "w on /udies 6resolve ! te*nological pro#ms may / 2 eligi#4 ,? is amplifi$ 9 lat] sec;ns4 #af #c ,require;ts = ,sci5tific a#d & ,te*nical ,3t5t & ,docu;t,n #c.a ,x is usual 9 sci5tific rese>* & exp]i;tal develop;t 6expect t a plann$ approa* 6! project w 2 =mulat$2 t is1 a hypo!sis w 2 adv.ed1 &a sy/ematic s]ies ( exp]i;ts or analyses w 2 plann$ 6te/ ! hypo!sis4 ,ea* project %d 2 docu;t$ %[+ cle>ly :y ea* major ele;t is requir$1 & h[ x fits 96! project z a :ole4 ,6build on ! results ( te/+ 9 a sy/ematic way requires ! organiz$ docu;t,n ( "w "utak5 9 ! ele;ts ( exp]i;t,n or analysis4 ,! sy/ematic progres.n (! activ;y is built on analyz+ ! results f /ep 6/ep--! 8sy/ematic 9ve/ig,n or se>*0 call$ = 9 subsec;n #bijj7#a7 (! ,regul,ns--& is ! ess;e (! exp]i;tal me?od4 ,if claims = sci5tific rese>* & exp]i;tal develop;t >e 6be def5d$1 x is important =a firm 6ma9ta9 dat$ docu;ts (! orig9al te*nological #ag #c ,require;ts sci5tific b#d goals (! project1 ! progress (! "w & h[ x has be5 c>ri$ \1 &! project's 3clu.ns4 ,we al expect t ! 9dicators or m1sures 6be us$ 6det]m9e if ! te*nological objectives (! project >e met w 2 id5tifi$ :5 =m+ ! 3cepts =! program4 ,^! m1sures %d al 2 docu;t$ at ! e>ly /ages (! program4 ,failure 6h s* docu;t,n 9dicates ! abs;e (a sy/ematic program ( sci5tific rese>* or exp]i;tal develop;t4 ,note t failure 6a*ieve ! objectives does n negate ! valid;y (! exp]i;tal develop;t program4 #d ,"*i/ics ( ,exp]i;tal ,develop;t #d.a ,eligi# activities m/ g5]ate 9=m,n t adv.es \r "u/&+ ( sci5tific rel,ns or te*nologies4 ,a te*nological adv.e is 9corporat+1 0m1ns ( exp]i;tal #ah #d ,"*i/ics exp]i;tal c#d develop;t1 a "*i/ic or capabil;y n previ\sly exi/+ or availa# 9 /&>d practice1 96a new or exi/+ process or product t 5h.es a product's p]=m.e4 ,novelty1 unique;s1 or 9nov,n al"o d n 9dicate a te*nological adv.e4 #d.b ,a key 4t9c;n 2t eligi# & 9eligi# activities is ! di6];e 2t exp]i;tal develop;t & develop;t bas$ solely on 8/&>d practice0 9 e/abli%$ fields ( 5g9e]+ or te*nology4 ,/&>d practice ref]s 6directly adapt+ a "kn 5g9e]+ or te*nological practice 6a new situ,n :5 "! is a hi< degree ( c]ta9ty t ! "kn te*nology or practice w a*ieve ! desir$ objective4 ,specific,y1 projects predom9antly us+ 8/&>d practice0 >e bas$ on -monly availa# exp]i;e1 & develop;t activities bas$ on x g5],y >e 9eligi#4 ,:5 8/&>d practice0 is us$ 6support an eligi# exp]i;tal develop;t activ;y1 ! associat$ activities >e ( c\rse #ai #d ,"*i/ics exp]i;tal d#d eligi#4 ,ultimately1 ! f9al judge;t ( :at is or is n /&>d practice 9 a giv5 field ( te*nology c only 2 made 0speciali/s famili> ) t field4 #d.c ,adapt+ a "kn te*nology or practice 6new situ,ns is 9eligi# :5 ! r\tes =! progres.n ( "w t w l1d 6su3ess;l solu;ns 6a te*nological or 5g9e]+ pro#m c 2 id5tifi$ 9 /&>d practice4 ,9 o!r ^ws1 if ! project 9volves directly adapt+ a "kn te*nology 6a new situ,n1 :5 x is r1sonably c]ta9 t ! approa* w "w1 x is 9eligi#4 ,if a te*nological unc]ta9ty is pres5t1 h["e1 !n exp]i;tal develop;t w o3ur1 & an exp]i;t,y bas$ /udy w 2 requir$ : goes 2y /&>d practice4 ,ess5ti,y1 ! pres;e (a te*nological unc]ta9ty puts ! project 96! r1lm ( exp]i;tal develop;t :5 solu;ns _c 2 bas$ on /&>d practice al"o4 #d.d ,a claim = qualify+ exp5ditures %d cle>ly expla9 all de"pures f /&>d #bj #d ,"*i/ics exp]i;tal e#d practice 9 ! exp]i;tal develop;t activ;y4 #d.e ,9 exp]i;tal develop;t1 ! \tcome is unc]ta9 2c ! pres5t level ( te*nology 7/ate-(-!->t7 is 9su6ici5t1 or 2c ! -patibil;y ( new -b9,ns ( te*nologies is unc]ta94 ,resolv+ ! te*nological unc]ta9ty w result 9 a te*nological adv.e1 & x is ! "w on resolv+ ^! unc]ta9ties t "*izes an eligi# exp]i;tal develop;t activ;y4 ,nei ! failure nor ! su3ess (a project proves t te*nological unc]ta9ty exi/s4 ,x is ! r1son :y ! failure or su3ess o3urs t is important4 ,failure >is+ 2c ( 9exp]i;e1 improp] applic,n ( /&>d practice1 lack ( 9=m,n1 or f9ancial 3/ra9ts1 does n 9 xf 9dicate t a te*nological risk is pres5t4 #d.f ,:5 -plex -b9,ns ( te*nology o3ur1 ! crit]ion 4t+ui%+ 2t eligi# exp]i;tal develop;t & 9eligi# develop;t is ag ! ele;t ( te*nological unc]ta9ty4 ,if a -plex 5g9e]+ activ;y results 9 a #ba #d ,"*i/ics exp]i;tal f#d new product or process1 ! develop;t ( : 0 ! alm c]ta9 \tcome ( apply+ a progres.n ( well-"kn te*niques1 x _c 2 classifi$ z an eligi# exp]i;tal develop;t activ;y4 ,? equates 6assembl+ a jigsaw puzzle ": ea* (! pieces is well-def9$1 & x c 2 expect$ t1 )a giv5 am.t ( ef=t & r1sona# te*nical skills1 ! f9al product c 2 assem#d4 #d.g ,9 any exp]i;tal develop;t program1 "! is ! usual progres.n ( activities f ! 3cep;n ( an --------------------------------------#e idea "? 6full-scale produc;n4 ,"! >e two types ( activities t c 2 associat$ ) any -pon5t 9 ? progres.n3 7a7 ^? bas$ solely on /&>d practice 7e4g41 m9or modific,ns1 tr\#%oot+1 debu7+1 etc471 :5 ! \tcome is predicta# & ?us ! activities >e 9eligi#2 & #bb #d ,"*i/ics exp]i;tal a#e 7b7 ^? requir+ te*nological adv.e;t 7new or improv$ product or process "*i/ics71 : >e eligi#4 ,! c5tral pro#m 9 any multifacet$ exp]i;tal develop;t program is 6id5tify : -pon5ts >e eligi#1 & : >e n 7i4e41 : 2l;g 9 ei 7a7 or 7b7 abv74 ,any po9t al;g ! 5tire process f 9itial 3cep;n 6! "t :5 -m]cial produc;n 2g9s has ! pot5tial 63ta9 an eligi# activ;y ( exp]i;tal develop;t4 #d.h ,"w on -b9+ /&>d te*nologies1 devices1 &/or processes is eligi# if non-trivial -b9,ns ( e/abli%$ 7well- "kn7 te*nologies & pr9ciples = _! 9tegr,n c>ry a major ele;t ( te*nological unc]ta9ty2 ? may 2 call$ a 8sy/em unc]ta9ty40 ,if ! te*nological specific,ns or objectives 6resolve ! 8sy/em unc]ta9ty0 >e s* t ! basic design (! "uly+ te*nologies m/ 2 *ang$ 6a*ieve ! 9tegr,n1 ! curr5t co/s (! ov]all project may qualify4 ,m (t51 x w 2 nec 6sep>ate ^? activities #bc #d ,"*i/ics exp]i;tal b#e : >e eligi# f ^? : >e n4 ,9 s* situ,ns1 a c5tral pro#m is 6det]m9e : "w relates 6! eligi# activ;y 7i4e41 : r\t9e 5g9e]+ activities >e c>ri$ \ 9 8support0 (! require;ts (! eligi# activ;y71 & : d n4 ,:5 ! specific,ns = -pon5ts requir+ adv.es 9 te*nology d n significantly a6ect ! design require;ts ( o!r -pon5ts 9 -plex projects1 only 9dividual /udies c>ri$ \ 6meet ! adv.ed design require;ts (! activ;y >e eligi#4 ,:5 adv.ed te*nological specific,ns require redesign+ closely relat$ -pon5ts1 !n ! activities associat$ ) redesign+ ! associat$ -pon5ts >e eligi#4 ,^! 3sid],ns apply 6! assess;t ( any cu/om design project 7cu/omiz,n71 pilot plants : h -m]cial pot5tial1 & prototypes : >e ultimately sold4 #d.i ,:5 x is nec 64t+ui% 2t eligi# & 9eligi# activities 9 -plex #bd #d ,"*i/ics exp]i;tal c#e projects1 a3.t+ proc$ures h 6be e/abli%$ 6reflect ? require;t4 #e ,id5tify+ ,eligi# ,activities ,associat$ ,) ,collect+ ,data #e.a ,= activities associat$ ) collect+ or monitor+ data 6qualify1 ! data m/ 2 collect$ directly =! purpose ( resolv+ a sci5tific or te*nological unc]ta9ty associat$ ) an eligi# activ;y4 ,(t51 ! analysis ( l>ge collec;ns ( survey data c 2 us$ 6resolve a te*nological unc]ta9ty1 ev5 if ! data >e n specific,y or directly collect$ =! ne$s (! eligi# sci5tific rese>* or exp]i;tal develop;t activ;y4 ,9 ^! cases1 only ! activities associat$ ) analyz+ ! data wd 2 eligi#1 n ! actual data collec;n4 ,=! activities 6be eligi#1 a sy/ematic approa* 6collect+ 7/udy design7 m/ 2 foll[$ : provides only ! am.t ( data ne$$ =! #be #e ,id5tify+ activities d#e specific sci5tific or te*nological unc]ta9ty 2+ /udi$4 ,9 o!r ^ws1 sy/ematic /udy design w 2 focuss$ on provid+ ! am.t ( 9=m,n appropriate 6resolv+ ! issue4 ,specific,y1 ! dim5.ns or size ( data collec;ns1 = : ! collec;n co/s qualify1 %d agree )! require;ts t c 2 det]m9$ f well- e/abli%$ /ati/ical 3sid],ns = develop+ gd exp]i;tal designs4 #e.b ,! abv %d n 2 tak5 z exclud+ -pletely ! practice ( us+ te/+ protocols t d n /rictly foll[ /ati/ical 3sid],ns1 if s* te/s >e ne$$ 6resolve a specific sci5tific or te*nological unc]ta9ty4 ,n"e!.s1 collect+ excessive am.ts ( data is g5],y n 3si/5t )a sy/ematic 9ve/ig,n1 & wd g5],y 2 gr.ds = "q+ ! eligibil;y (! collec;n activities 7b n = "q+ ! activities associat$ ) analyz+ ! data74 #e.c ,(t51 a qualify+ sci5tific rese>* & exp]i;tal develop;t activ;y is #bf #e ,id5tify+ activities e#e c>ri$ \ tgr ) 5viron;tal1 geological1 or hydrological surveys1 regul> explor,n1 or o!r g5],y 9eligi# activities4 ,! collec;n co/s =! 9eligi# activ;y t wd usu,y 2 9curr$ / w n qualify1 ev5 if an exp]i;tal develop;t project has be5 atta*$ 6s* surveys or explor,n activities or te/+4 ,h["e1 9 ^! cases1 x wd 2 appropriate 63sid]1 z a qualify+ co/1 ! a4$ curr5t exp5ditures >is+ f 9clud+ ! rese>* program4 ,= example1 data cd 2 collect$ 6te/ a new approa* = collect+ data4 ,6v]ify ? new approa*1 x wd 2 appropriate 69corporate ? te/+ 96a program = regul> collec;n or monitor+2 only ! a4$ co/s = te/+ ! new sy/em wd qualify4 #e.d ,:5 a hypo!sis ab a sci5tific or te*nological unc]ta9ty is te/$ "? projects 9volv+ exp]i;t,n1 t exp]i;t,n w 9volve data collec;n4 ,fur!r1 #bg #e ,id5tify+ activities f#e we reg>d ! data collec;n 9volv$ 9 all s* exp]i;t,n z 2+ an eligi# activ;y :5 ! size (! data collec;n mat*es ! ne$s (! /udy4 ,:ile ! specific p>amet]s 2+ m1sur$ may 2 -monly 5c.t]$ qual;y or process+ p>amet]s1 we w 3sid] _! m1sure;t 6be eligi# :5 ! exp]i;t directly 3=ms 6! ne$s (! exp]i;tal activ;y4 ,? is 9 direct 3tra/ )! type ( data collec;n t o3urs 9 "ey"d -m]cial op],ns1 ": ! prim>y objective ( s* analyses is product or process monitor+ 6demon/rate adh];e to --------------------------------------#f specific,ns1 sup]vi.n ( processes1 & 3trol ( f9i%$ product "*i/ics4 ,we d n 3sid] ^! la/ 6be qualify+ exp5ditures4 #e.e ,n"o (! co/s = collect+ data ne$$ 9 ! usual c\rse ( manag]ial duties--s* z = qual;y 3trol1 9v5tory 3trol1 co/ 3trol1 deliv]y 3trol1 & process or product monitor+ 9 -m]cial situ,ns-- qualify4 #bh #e ,id5tify+ activities a#f #e.f ,co/s = collect+ data 6be us$ z basel9e data or 6support develop;ts bas$ solely on /&>d 5g9e]+ or te*nological practice d n qualify4 ,s* data g5],y >e (! foll[+ type3 7a7 data on ! physical prop]ties ( sites1 s* z hydrological1 geological1 & geophysical data us$ 0>*itects1 5g9e]s1 agricultural te*nologi/s1 & geophysici/s 9 ! usual c\rse ( _! profes.nal tasks1 :5 no eligi# sci5tific rese>* & exp]i;tal develop;t activ;y is pres5t2 or 7b7 descriptive data s* z popul,n c5sus collec;ns or descrip;ns (! flora & fauna 9 a region1 us$ z basel9e data1 or simil> collec;ns ( hydrological1 geological1 or geophysical data4 ,h["e1 9 "s fields ( basic or appli$ sci;e1 purely descriptive data >e collect$ 9 projects t seek 6make m1n+;l adv.es 9 ! k base ( ^! #bi #e ,id5tify+ activities b#f fields4 ,= s* projects 6be 3sid]$ z eligi# activities 9 sci5tific rese>* & exp]i;tal develop;t1 ! project objectives wd h 6be recogniz$ z 3/itut+ ! se>* =a significant adv.e;t 0a profes.nal rese>* sci5ti/ "w+ 9 ! field4 #e.g ,! collec;n ( data us+ repetitive1 /&>diz$ proc$ures or protocols1 seek+ 6e/abli% :e!r p>amet]s >e )9 ! usual b.d>ies1 "*izes m* r\t9e te/+4 ,examples >e regul> cl9ical te/+ = m$ical diagno/ic purposes1 or ! monitor+ ( -m]cial produc;n processes4 ,! co/s ( collect+ s* data d n qualify4 ,( c\rse1 ! co/s = us+ ! same or simil> exp]i;tal protocols or proc$ures may qualify :5 !y meet ! require;ts ( eligi# sci5tific rese>* & exp]i;tal develop;t activities4 #cj #f ,crit]ia = ,id5tify+ c#f ,eligi# ,activities 9 ,-put] ,sci;e & ,associat$ ,te*nologies ,! foll[+ a4resses ! pro#m ( :at is an adv.e directly 9 -put] sci;e & associat$ te*nologies4 ,activities s* z programm+ & cod+1 t >e -m5surate )! ne$s & directly 9 support ( an eligi# project 9 o!r fields >e eligi# activities4 #f.a ,-put] sci;e is a 4cipl9e t draws ^u adv.es made 9 num]\s o!r fields ( sci;e1 "picul>ly electrical & electronic 5g9e]+1 & ma!matics4 ,x is a 4cipl9e ": adv.es 9 h>dw>e & s(tw>e >ise f ! unique applic,n ( -b9,ns ( te*nologies & id1s 6develop+ me?ods ( manipulat+1 /ructur+1 & -municat+ data "? -put]s4 #f.b ,x is h[ ! data >e manipulat$1 organiz$1 or -municat$1 & :e!r or n ! me?odology 9 "q repres5ts an adv.e ov] ! te*nology ( data manipul,n or #ca #f ,crit]ia activities d#f -munic,n -monly availa# 9 ! 9du/ry 3c]n$1 t is important 9 det]m9+ :at is an eligi# activ;y 9 ? field4 ,x is n ! nature or purpose (! data 2+ manipulat$ or -municat$ t is at issue4 #f.c ,z not$1 novelty or 9nov,n al"o 9 ! product or process does n demon/rate t an eligi# activ;y exi/s4 ,x is h[ ! novelty >ises 7i4e41 :e!r or n x >ises f ! resolv+ te*nological unc]ta9ties7 : is important4 ,9 ? respect1 al? x c 2 sd t e new or improv$ -put] program is unique 9 "s aspect1 6be eligi# "u subsec;n #bijj7#a7 (! ,regul,ns1 a new or improv$ program m/ repres5t a sci5tific or te*nological adv.e4 ,an ef=t 6a*ieve s* an adv.e w result 9 a significant de"pure f ! usual e/abli%$ practice 9 busi;s4 ,x results f a situ,n :5 "! is a te*nological unc]ta9ty ab ! me?od ( a*ieve;t (1 or ! actual a*ieve;t (1 ! adv.ed te*nological objective4 #cb #f ,crit]ia activities e#f #f.d ,x is important 6r1lize t unc]ta9ties c al >ise f non-te*nical s\rces1 s* z ! failure 6use availa# 9=m,n1 lack ( programm+ k 79correct applic,n ( exi/+ pr9ciples71 or lack ( te*nical manage;t exp]tise 7s* z "ue/imat+ di6iculties 9 d[nsiz+1 language transl,ns1 or h>dw>e 9t]fac+1 or ! 9correct specific,n ( te*nological require;ts74 ,a te*nological unc]ta9ty1 on ! o!r h&1 >ises :5 ! solu;n is n r1dily app>5t 6"s"o famili> )! basic /ock ( -monly us$ k & te*niques )9 ! busi;s 3text (! firm4 ,only activities aim$ at resolv+ te*nological unc]ta9ties >e eligi#4 #f.e ,z 3c]ns programm+ associat$ ) applic,n s(tw>e1 cu/om s(tw>e1 data manage;t1 & num]ical analysis1 a -mon -pon5t ( eligi# activities is (t5 ! develop;t ( new1 adv.ed algori?ms 7proc$ures & subr\t9es71 or ! use ( algori?ms new 6a "picul> >ea ( busi;s #cc #f ,crit]ia activities f#f 6resolve a te*nical unc]ta9ty 9 t >ea ( busi;s4 #f.f ,9 g5]al1 we expect t1 9 multifacet$ s(tw>e projects1 :ile "s aspects (! project may qualify1 o!rs w n4 ,9 o!r ^ws1 only ^? aspects or -pon5ts t attempt 6resolve a te*nological unc]ta9ty w qualify4 ,o!r aspects ( develop+ ! ov]all s(tw>e program wd usu,y 2 9eligi# un.s ! "*i/ics (! adv.e cr1te1 or l1ve rema9+1 major unc]ta9ties ab --------------------------------------#g :e!r ! ov]all te*nological objectives (! project c 2 a*iev$4 ,9 ^! cases1 ! "w associat$ )! ov]all project may 2 eligi#4 ,h["e1 if resolv+ ! te*nological unc]ta9ty lat] requires modify+ associat$ e/abli%$ -pon5ts1 !n "w on ^? modific,ns w 2 eligi#4 ,a4i;nal aspects (! 9tegr,n g5],y wd n 2 #cd #f ,crit]ia activities a#g eligi#4 ,9 s* cases1 segregat+ activities 7) docu;t,n7 am;g ! project -pon5ts wd 2 appropriate4 #f.g ,cu/omiz+ s(tw>e 9volves *anges 6meet ! 9dividual require;ts (a us]4 ,:ile s* *anges (t5 require a significant am.t ( cod+ & o!r "w1 cu/omiz,n assign;ts >e usu,y 9 ! nature ( 8f9e-tun+0 or ma9t5.e4 ,^! activities >e g5],y 9eligi# 2c te*nological unc]ta9ties usu,y >e n 9volv$4 ,h["e1 if an activ;y requir$ 6resolve a te*nological unc]ta9ty is id5tifi$1 !n ! co/s associat$ ) ? "w w qualify4 #f.h ,"w on improv+ or advanc+ ! us] 9t]face 9 -put] sy/ems1 9clud+ develop+ te*nological objectives =! us] 9t]face1 c 2 an 9tegral "p ( eligi# exp]i;tal develop;t activities4 ,s* activities may 9clude rese>* on specify+ us] require;ts4 ,!y >e eligi# :5 c>ri$ \ directly 9 support (! ne$s ( an activ;y t xf is e/abli%$ z #ce #f ,crit]ia activities b#g eligi#4 ,all m>ket rese>* activities1 9clud+ ^? direct$ at m>ket develop;t & m>ket v]ific,n1 g5]al m>ket id5tific,n1 m>ket demon/r,n1 m>ket pref];e1 & develop;t ( cu/om] a3ept.e1 >e 9eligi#4 #f.i ,reg>d+ s(tw>e1 ! cut(f = exp]i;tal develop;t is ! po9t :5 ! product or process c 2 or is us$ 9 r\t9e op],ns4 ,if pro#ms %d em]ge 9 ! -m]cial use (! product1 & resolv+ !m 3ta9s te*nological unc]ta9ties1 !n x %d 2 3sid]$ a new project = purposes ( subsec;n #bijj7#a7 (! ,regul,ns4 ,! qualify+ activities 9 ! new project >e only ^? t >e ne$$ 6resolve ! newly 5c.t]$ te*nological unc]ta9ty1 & n ! co/s = f9d+ \ t a pro#m exi/s once a product is us$ 9 r\t9e op],ns4 ,simil>ly1 a cu/om] may f9d defects 9 e/abli%$ products4 ,"w "utak5 9 correct+ s* defects >e eligi# activities only if a new te*nological unc]ta9ty is id5tifi$ & a4ress$4 #cf #f ,crit]ia activities c#g #f.aj ,! foll[+ >e -;ts on :at 3/itutes adv.es 9 specific >1s ( -put] sci;e & associat$ te*nologies4 ,!y >e 9t5d$ 6provide guid.e1 b !y >e n 9t5d$ 6be def9itive or 6preclude "w 9 o!r >1s4 ,obvi\sly1 :at 3/itutes an adv.e 9 any >ea / m/ 2 judg$ 9 lit0 9 t >ea at ! "t :5 ! project is "utak54 7a7 .,!oretical .-put] .sci;e d1ls ) :at is -put+1 :at c or _c 2 d"o ) -put+1 & h[ x c 2 d"o4 ,? 9cludes1 = example1 -plex;y analysis & language !ory4 ,g5],y1 ! te*nological or sci5tific adv.es 9 ? >ea produce new !orems & algori?ms4 ,z 9 any sci5tific or te*nological 5d1v\r ": unc]ta9ty exi/s1 "s eligi# activities >e expect$ 6h negative results4 7b7 .,op]at+ .sy/ems provide s]vices 9 a -put] sy/em = 7;i7 manag+ res\rces s* z files1 processes1 memory1 & "t2 & 7;ii7 manag+ 9t]faces s* z #cg #f ,crit]ia activities d#g ^? )! us]1 ) ma*9es1 &) -munic,ns sy/ems4 ,te*nological adv.es 3si/ 9 a te*nological improve;t 9 7;i7 or 7;ii72 a truly new op]at+ sy/em2 or 3v]t+ an op]at+ sy/em 6a significantly di6]5t h>dw>e 5viron;t4 ,9 4put$ cases1 -put] sci5ti/s ) exp]i;e 9 ! "picul> >ea 9 "q ne$ 6assess :at is 8significantly di6]5t40 7c7 ,te*nological adv.es 9 .programm+ .languages >e new languages2 significant ext5.ns 6an exi/+ language2 & new or significantly di6]5t language translators4 7d7 .,applic,ns .s(tw>e 79clud+ cu/omiz$ s(tw>e7 9volves develop+ s(tw>e sy/ems = "picul> uses4 ,9 a4i;n 6! situ,ns previ\sly \tl9$1 te*nological adv.es may o3ur :5 a develop;t repres5ts a significant te*nological /ep =w>d 7e4g41 new -b9,ns ( e/abli%$ -put] program -pon5ts or "kn programm+ #ch #f ,crit]ia activities e#g pr9ciples71 provid$ t ? 9tegr,n requires resolv+ te*nological unc]ta9ties4 7e7 .,data .manage;t 9volves ! def9i;n1 organiz,n1 a3ess+1 manipul,n1 & /orage ( data )9 a -put] sy/em4 ,? 9cludes :at is g5],y call$ databases1 data /ructures1 & data algori?ms4 ,te*nological adv.es 9clude develop+ algori?ms 6a*ieve significantly bett] basic op],ns 7e4g41 retrievals f a database72 new or 5h.ed qu]y languages = databases : significantly 9cr1se ! p[] ( se>* or manipul,n capabilities2 & new object repres5t,ns or data /ructures4 7f7 .,s(tw>e .5g9e]+ 9volves ! /udy1 9 t]ms ( basic or appli$ rese>*1 (! me?odology =! design1 imple;t,n1 te/+1 & p]=m.e evalu,n ( s(tw>e sy/ems2 t is1 adv.es 9 ! me?odology requir$ 63/ruct -put] programs ) #ci #f ,crit]ia activities f#g grt] flexibil;y1 e6ici5cy1 reliabil;y1 & ease ( ma9t5.e4 7g7 .,>tificial .9tellig;e 7,,ai7 9volves ! /udy ( sy/ems t p]=m func;ns p>allel 6^? usu,y c>ri$ \ 0humans4 ,sci5tific & te*nological adv.es >e made 9 >1s s* z ma*9e vi.n1 robotics1 9f];e1 k repres5t,n1 exp]t sy/ems1 !orem prov+1 natural language "u/&+1 automatic language transl,n1 logic programm+1 & future g5],n sy/ems4 ,9 mo/ >1s ( ,,ai1 "! is n yet an e/abli%$ practice4 ,h["e1 ! attempt 6resolve a te*nological --------------------------------------#h unc]ta9ty has 6be demon/rat$ 6provide a basis = e/abli%+ :e!r exp5ditures >e eligi#4 ,frequ5tly 9 ? >ea ! exi/;e ( any k9d ( solu;n is unc]ta91 &! rese>* ef=t w reflect ? 9det]m9acy4 #dj #g ,3sid],ns 9 ,det]m9+ ,:5 a#h an ,exp]i;tal ,develop;t ,project is ,-plete #g.a ,! develop;t (a new or improv$ product or process "? a program ( exp]i;tal develop;t c 2 %[n 6o3ur 9 five /ages3 7a7 ,! def9i;n (a 3cept or te*nological hypo!sis tgr )a /ate;t ( correspond+ te*nological objectives4 7b7 ,! def9i;n (a sy/ematic program 6a*ieve ! te*nological objectives def9$ 9 7a74 ,z f> z possi#1 ? w describe a te*nological develop;t plan & program 9clud+ v>i\s subprojects1 mile/"os1 & /eps al;g ! develop;t pa?4 ,we expect t s* a plan likely w h 6be *ang$ z ! develop;t progresses 2c (! unc]ta9ties t "*ize te*nological develop;ts4 #da #g ,3sid],ns det]m9+ b#h 7c7 ,! process or product is develop$ 6! prototype or pilot /age = exp]i;tal or te*nical-trial purposes4 ,t is1 prototypes >e 6te/ ! f1sibil;y (! 3cept or hypo!sis4 ,possibly1 ! 3/ruc;n (a :ole s]ies ( pilots or prototypes may 2 9volv$1 z pro#ms >e met & ei ov]come or bypass$4 ,x may 2 t1 9 ? phase (! develop;t1 ! orig9al objectives h 6be modifi$ significantly or p]h ev5 *ang$ 5tirely1 dep5d+ on ! te*nological opportunities : 2come app>5t4 ,h["e1 s* cases %d 2 reg>d$ = purposes ( subsec;n #bijj7#a7 (! ,regul,ns z a s]ies ( sci5tific rese>* & exp]i;tal develop;t projects ) 4t9ct & docu;t$ te*nological objectives4 7d7 ,! product or process is develop$ 6meet ! require;ts ( -m]cial produc;n4 ,? /age may 9volve activities s* z scal+ up f pilot plant size 6-m]cial size1 or #db #g ,3sid],ns det]m9+ c#h develop+ an economical m1ns = manufacture4 ,9 _m cases1 ! te*nologic,y su3ess;l prototype may h be5 fabricat$ us+ me?ods or mat]ials : >e too exp5sive 6be practical = -m]cial produc;n4 7e7 ,-m]cial utiliz,n or produc;n4 ,:ile ! five /ages >e n alw describ$ 0-panies 9 ! =mat giv5 abv1 !y >e1 n"e!.s1 9volv$ 9 "s mann] 9 mo/ te*nological develop;ts4 ,v>i,ns d exi/ & >e 6be expect$4 ,= example1 ! ?ird /age 7c7 is "s"ts bypass$1 &! 8prototype0 is develop$ 6meet -m]cial require;ts4 ,9 "s cases1 ! develop;t may 3si/ ( sy/ematic,y 3/ruct+ a s]ies ( prototypes1 ea* 9corporat+ ! lessons le>n$ f e>li] prototypes4 #g.b ,:5 an exp]i;tal develop;t project is 9volv$1 ! "w c>ri$ \ 9 ! f/ ?ree /ages is eligi#4 ,di6iculty may >ise 9 det]m9+ :e!r "s activities fall+ )9 ! b.ds (! f\r? /age 7d7 >e eligi#4 #dc #g ,3sid],ns det]m9+ d#h ,9 ? respect1 ! key issue is :e!r "! is a te*nological unc]ta9ty / 6be ov]come1 or :e!r ? /age c 2 c>ri$ \ "? /&>d practice 7see ,"p #d74 ,activities associat$ ) -m]cial produc;n 7! fif? /age7 >e n eligi# z sci5tific rese>* & exp]i;tal develop;t activities4 #g.c ,! applic,n ( crit]ia t w det]m9e :e!r an exp]i;tal develop;t activ;y %d 2 classifi$ z -plete w di6] f case 6case4 ,x is use;l 6recognize ! foll[+ g5]al situ,ns3 ,situ,n #a3 ,! develop;t1 design1 & manufacture ( multiple products 9 regulat$ & unregulat$ 9du/ries4 ,situ,n #b3 ,! design & 3/ruc;n (a specializ$ 7cu/omiz$7 product 7i4e41 8"o (a k9d071 or ( specializ$ products produc$ 9 small numb]s 9 regulat$ & unregulat$ 9du/ries4 ,situ,n #c3 ,! develop;t or upgrad+ ( processes = sale &/or use 0! develop]4 #dd #g ,3sid],ns det]m9+ e#h ,h["e1 ! basic crit]ion = det]m9+ :5 a sci5tific rese>* & exp]i;tal develop;t project has be5 -plet$ is r1*+ ! po9t at : ! project's 9itial te*nological objectives h be5 a*iev$4 ,g5],y1 ? o3urs :5 ! applic,n ( /&>d op]at+ practices w p]mit ! a*ieve;t (! te*nological p]=m.e objectives : 7 e/abli%$ :5 ! project 0 def9$4 ,nei f9ancial 9dicators 7s* z f/ sale7 nor issu+ w>ranties al"o1 = example1 >e adequate 6m>k ": exp]i;tal develop;t sep>ates f -m]cial produc;n4 #g.d 8,regulat$0 m1ns t ! product or process has 6meet "s g5],y a3ept$1 well-def9$ te*nological a3ept.e te/ or te/s1 or te*nological specific,ns1 2f x c 2 regi/]$1 m>ket$1 or c]tifi$4 ,^! require;ts may 2 e/abli%$ 0ei =mal regulatory ag5cies1 0! 9du/ries1 or 0o!r bodies (f]+ c]tific,n4 #g.e ,9 regulat$ 9du/ries ": specific,ns = product p]=m.e1 regi/r,n1 #de #g ,3sid],ns det]m9+ f#h c]tific,n1 &/or safety >e 5=c$ or >e g5],y a3ept$1 /udies requir$ 6meet ^! require;ts or /&>ds >e eligi# activities4 ,if1 h["e1 a product is sold 9iti,y 9 an unregulat$ or less /r+5tly regulat$ m>ket1 ! exp]i;tal develop;t project is 3sid]$ 6be -plete :5 ! te*nological objectives requir$ =! 9itial project >e met4 ,z m>kets >e exp&$1 /udies 6demon/rate t --------------------------------------#i m /r+5t regul,n or /&>ds = regi/r,n or c]tific,n c 2 met >e eligi# z sep>ate exp]i;tal develop;t /udies 7see ,note #a74 ,^! /udies >e -plete :5 ! data demon/rates :e!r or n ! new regul,ns or /&>ds h be5 met4 ,a4i;nal activities1 s* z ! prep>,n ( submis.ns or docu;ts = lic5s+ ag5cies1 c]tific,n ag5cies1 or regulatory au?orities1 >e n eligi# activities4 #df #g ,3sid],ns det]m9+ a#i ,note #a3 ,/udies c>ri$ \ 6demon/rate t regulatory require;ts or /&>ds c 2 met >e 3sid]$ eligi# activities 2c we assume t a te*nological or sci5tific unc]ta9ty m/ 2 resolv$ 6-plete ! product 6! satisfac;n (! regulatory au?orities4 ,^! /udies >e -plete :5 ! data demon/rate t ! te*nological unc]ta9ty is resolv$4 #g.f ,m>ket demon/r,ns1 9clud+ cu/om] a3ept.e /udies1 product v]ific,n1 & m>ket+ /udies -p>+ a new product or process ) ^? ( -petitors >e "p (! m>ket+ process1 & >e n eligi# activities reg>d+ exp]i;tal develop;t4 ,9 bo? regulat$ & non-regulat$ 9du/ries1 te*nological specific,ns >e det]m9$ 0-m]cial objectives & 05d-us] require;ts4 ,x is nec 6def9e ^! require;ts & 6devise correspond+ 9t]nal te*nological specific,ns4 #dg #g ,3sid],ns det]m9+ b#i ,x is appropriate t "w on def9+ s* te*nological specific,ns 2 eligi#1 s l;g z ^! specific,ns h 3tribut$ directly 6! "*iz,n (! te*nological objectives (a sci5tific rese>* & exp]i;tal develop;t project t is "u way4 ,z not$ previ\sly1 h["e1 m>ket rese>* xf is an exclud$ activ;y "u subsec;n #bijj7#a7 (! ,regul,ns4 #g.g ,exp]i;tal develop;t (a cu/omiz$ process or product is usu,y -plete once ! product or process meets ! 9t5d$ te*nological objectives4 ,putt+ ! cu/omiz$ product 6xs 9t5d$ use 9dicates t ! exp]i;tal develop;t has be5 -plet$ at "s e>li] "t4 ,:5 a cu/omiz$ process is r1dy 6be develop$ on a -m]cial scale1 exp]i;tal develop;t is g5],y -plete4 ,h["e1 te*nological pro#ms may >ise dur+ ! attempt 6use ! new te*nology1 &! #dh #g ,3sid],ns det]m9+ c#i activities requir$ 6correct ^! may 2 classifi$ z new1 eligi# sci5tific rese>* & exp]i;tal develop;t projects4 #g.h ,9 g5]al1 ! r\t9e 8scal+ up0 f prototype or pilot demon/r,ns is n eligi#4 ,h["e1 specific sci5tific rese>* & exp]i;tal develop;t projects may 2 id5tifi$ dur+ ? phase : w 2come eligi# 7see ,"p #d74 #g.i 8,pilot plants0 may "s"ts 2 built 6a -m]cial scale1 or exi/+ -m]cial plants may 2 modifi$ s z 6te/ & demon/rate new processes4 ,9 s* 9/.es1 m* te*nological adv.e;t may 2 requir$1 & eligi# sci5tific rese>* & exp]i;tal develop;t may 2 9volv$ 9 develop+ :at w ev5tu,y 2 a -m]cial facil;y4 ,! qualify+ exp5ditures = sci5tific rese>* & exp]i;tal develop;t )9 s* projects m/ 2 sep>at$ f ^? : wd usu,y 2 associat$ ) 3/ruct+ a -m]cial plant if ! te*nology _h alr exi/$4 ,! co/ (! sci5tific rese>* & exp]i;tal #di #g ,3sid],ns det]m9+ d#i develop;t activities %d 2 isolat$ 0a3.t+ 9dividu,y = _! co/s4 #g.aj ,! usual manufactur+ facilities may "s"ts 2 employ$ 9 sci5tific rese>* & exp]i;tal develop;t activities 63firm ! su3ess ( eligi# process &/or product develop;t projects4 ,appropriate co/s 9curr$ f us+ ! facilities c 2 all[$ if !y meet ! require;ts ( sec;n #cg & if ! use is docu;t$ z "p (a preplann$1 sy/ematic develop;t program4 ,x is nec 6e/abli% ! specific p]iods ( use4 #g.aa ,exp]i;tal develop;t "w =! purposes ( cr1t+ new1 or improv+ exi/+1 mat]ials1 devices1 products1 or processes1 9clud+ slie met4 #h ,adm9i/rative ,-;ts #h.a ,de"p;tal speciali/s or advisors ,9 a4i;n 6obta9+ ! advice ( #ej #h ,adm9i/rative -;ts e#i speciali/s 9 o!r f$]al de"p;ts & ag5cies1 z au?oriz$ 0subsec;n #cg7#c7 (! ,act1 we may 5gage \tside speciali/s 6det]m9e :e!r or n c]ta9 activities 2+ c>ri$ on 0a taxpay] qualify z sci5tific rese>* & exp]i;tal develop;t4 ,foll[+ a review ( 9=m,n 3ta9$ 9 ! taxpay]'s submis.n 0te*nical /aff1 we w decide if we ne$ m 9=m,n4 ,dur+ an on-site exam9,n1 ! speciali/1 a3ompani$ 0"o ( \r auditors1 w meet )! taxpay]'s rese>* p]sonnel1 & w review ! activities = : "qs / exi/1 6obta9 su6ici5t 9=m,n 6make an 9=m$ op9ion z 6:e!r ea* activ;y qualifies z sci5tific rese>* & exp]i;tal develop;t4 #h.b ,3fid5tial;y #h.b.a ,-m]cial secrecy ,recogniz+ t sci5tific rese>* & exp]i;tal develop;t plans & activities h a vital be>+ on a -pany's -petitive posi;n1 & t ! 9=m,n is #ea #h ,adm9i/rative -;ts f#i propriet>y1 we >e requir$ 0law 6tr1t any 9=m,n t a taxpay] gives u 9 ! /ricte/ 3fid;e4 ,s* 9=m,n may n 2 rev1l$ 6any p]son :o does n h a ne$ = x 6p]=m ! duties 3nect$ ) adm9i/]+ ! program4 ,all docu;ts t 3ta9 propriet>y 9=m,n submitt$ 9 3nec;n )! program %d 2 m>k$ 8,-m]cial 3fid5tial40 ,:5 we use ! s]vices (a speciali/ 6evaluate claims = sci5tific rese>* & exp]i;tal develop;t1 ! -------------------------------------#aj speciali/ falls )9 ! provi.ns ( sec;n #bda (! ,9come ,tax ,act4 ,! ,act provides = f9es &/or imprison;t if ! provi.ns ( sec;n #bda >e br1*$4 #h.c ,adv.e rul+s ,\r issu+ adv.e rul+s reg>d+ sci5tific rese>* & exp]i;tal develop;t has be5 limit$ 6! f9anc+ aspects ( s* transac;ns4 #eb #h ,adm9i/rative -;ts a#aj #h.d ,=m ,t#ffa ,! ,t#ffa is a prescrib$ =m t we require = fil+ claims = sci5tific rese>* & exp]i;tal develop;t "u sec;n #cg (! ,act & subsec;n #bijj7#a7 (! ,regul,ns4 #ec ,9dex #aa ,sci5tific ,rese>* & ,exp]i;tal ,develop;t ;,a ,a3.t+ proc$ures1 -plex projects 7#d.i7 ,activities1 type ( 7#d.g7 ,adv.e rul+s 7#h.c7 ,adv.e1 te*nological 7#d.a7 ,advisors1 de"p;tal 7#h.a7 ,,ai 7#f.aj 7g77 ,algori?ms 7#f.aj 7e77 ,applic,n s(tw>e 7#f.e71 7#f.aj 7d77 ,appli$ rese>* 7#b.d7 ,>tificial 9tellig;e 7#f.aj 7g77 ,automatic language transl,n 7#f.aj 7g77 ;,b ,basic rese>*1 def9i;n ( 7#b.d7 #ed ,9dex a#aa ;,c ,claims 7#d.d7 fil+ 7#h.d7 ,-m]cial activities 7#b.g7 plant1 3/ruc;n 7#g.i7 produc;n 7#g.a 7d77 secrecy 7#h.b.a7 ,-plex projects1 a3.t+ proc$ures 7#d.i7 ,-plex;y analysis 7#f.aj 7a77 ,-put] programm+ 7#f.j7 eligi# activities 7#b.e7 languages 7#f.aj 7c77 ,-put] sci;e eligi# activities1 crit]ia 7#f.j7 !oretical 7#f.aj 7a77 ,3fid5tial;y 7#h.b7 ,crit]ia applic,n ( 7#b.aa71 7#g.c7 eligi# activities1 -put] sci;e 7#f.j7 sci5tific or te*nological adv.e;t 7#b.aj.a7 3t5t 7#b.aj.c7 unc]ta9ty 7#b.aj.b7 #ee ,9dex b#aa ,cu/om s(tw>e 7#f.e7 ,cu/om] a3ept.e /udies 7#g.f7 ;,d ,data algori?ms 7#f.aj 7e77 ,data analysis 7#e.a7 ,data collec;n 7#b.e71 7#e.f7 co/s ( 7#e.g7 eligi# activities 7#e.j7 eligi# exp5ses 7#e.d7 9eligi# exp5ses 7#e.e7 ,data manage;t 7#f.aj 7e771 7#f.e7 ,data monitor+ 7#e.a7 ,data /ructures 7#f.aj 7e77 ,databases 7#f.aj 7e77 ,de"p;t ( ,f9.e 7#a.a7 ,design eligi# activities 7#b.e7 require;ts 7#d.h7 ,develop;t 7#b.ac71 7#b.d7 ,docu;t,n1 require;ts 7#c.j7 ,drill+ 7#b.e7 #ef ,9dex c#aa ;,e ,electrical 5g9e]+ 7#f.a7 ,electronic 5g9e]+ 7#f.a7 ,eligi# activities crit]ia1 -put] sci;e 7#f.j7 data collec;n 7#e.j7 ,5g9e]+ electrical 7#f.a7 electronic 7#f.a7 eligi# activities 7#b.e7 s(tw>e 7#f.aj 7f77 ,exp]i;tal develop;t 7#d.e7 activities 7#b.g7 "*i/ics 7#d.j7 def9i;n ( 7#a.d7 project 7#g.j7 ,exp]i;tal model1 see prototype ,exp]t sy/ems 7#f.aj 7g77 ,explor+ 7#b.e7 ;,f ,failure 7#d.e7 ,=m ,t#ffa 7#h.d7 ,future g5],n sy/ems 7#f.aj 7g77 #eg ,9dex d#aa ;,h ,humanities 7#b.e7 ;,i ,9come ,tax ,act ,subsec;n #bijj7#a7 (! ,regul,ns 7#a.a7 ,sec;n #cg 7#h.a7 ,9du/ries regulat$ 7#g.c7 unregulat$ 7#g.c7 ,9f];e 7#f.aj 7g77 ;,k ,k repres5t,n 7#f.aj 7g77 ,"kn te*nology 7#d.c7 ;,l ,language !ory 7#f.aj 7a77 transl,n1 automatic 7#f.aj 7g77 #eh ,9dex #ab ,languages -put] programm+ 7#f.aj 7c77 ,logic programm+ 7#f.aj 7g77 ;,m ,ma*9e vi.n 7#f.aj 7g77 ,m>ket+ /udies 7#g.f7 ,m>ket demon/r,ns 7#g.f7 rese>* 7#b.e71 7#f.h7 ,ma!matical analysis1 eligi# activities 7#b.e7 ,ma!matics 7#f.a7 ;,n ,natural language "u/&+ 7#f.aj 7g77 ,num]ical analysis 7#f.e7 ;,o ,op]at+ sy/ems 7#f.aj 7b77 ,op],ns rese>* eligi# activities 7#b.e7 #ei ,9dex a#ab ;,p ,pilot demon/r,ns 7#g.h7 plants 7#g.i7 ,process1 upgrad+ 7#g.aa7 ,product upgrad+ 7#g.aa7 v]ific,n 7#g.f7 ,programm+1 -put] 7#f.j7 ,project -ple;n ( 7#g.j71 7#g.c7 develop;t 7#g.j7 /ages 7#g.a7 docu;t,n1 require;ts 7#c.b7 exp]i;tal 7#g.j7 plann+1 require;ts 7#c.b7 ,propriet>y 9=m,n 7#h.b.a7 ,prospect+ 7#b.e7 ,prototype 7#g.a 7d771 7#g.h7 ,psy*ological rese>*1 eligi# activities 7#b.e7 ;,q ,qual;y 3trol 7#b.e7 #fj ,9dex b#ab ;,r ,regulat$1 def9i;n ( 7#g.d7 ,require;ts docu;t,n 7#c.j7 sci5tific & te*nical 3t5t 7#c.j7 ,robotics 7#f.aj 7g77 ;,s ,sales promo;n 7#b.e7 ,sci5tific adv.e;t1 crit]ion 7#b.aj.a7 3t5t crit]ion 7#b.aj.c7 require;ts 7#c.j7 rese>*1 def9i;n ( 7#a.d7 unc]ta9ty1 crit]ion 7#b.aj.b7 ,sec;n #cg1 ,9come ,tax ,act 7#a.a7 ,social sci;es 7#b.e7 ,s(tw>e 7#f.e7 applic,n 7#f.e7 applic,ns 7#f.aj 7d77 cu/om 7#f.e7 cu/omiz,n 7#f.g7 5g9e]+ 7#f.aj 7f77 #fa ,9dex c#ab ,speciali/s de"p;tal 7#h.a7 \tside 7#h.a7 ,specific,ns1 te*nical 7#g.f7 ,/&>d practice 7#d.b7 ,subsec;n #bijj7#a71 ,9come ,tax ,regul,ns 7#a.a7 ,surveys 7#e.c7 ,sy/ems future g5],n 7#f.aj 7g77 op]at+ 7#f.aj 7b77 ;,t ,te*nical 3t5t1 require;ts 7#c.j7 ,te*nical ,liaison ,-mittee 7#h.c7 ,te*nological adv.e 7#d.a7 adv.e;t1 crit]ion 7#b.aj.a7 3t5t1 crit]ion 7#b.aj.c7 unc]ta9ty 7#d.f7 crit]ion 7#b.aj.b7 ,te/+ protocols 7#e.b7 #fb ,9dex d#ab ,!orem prov+ 7#f.aj 7g77 ,!oretical -put] sci;e 7#f.aj 7a77 ,types ( activities 7#d.g7 #fc ,gloss>y #ac ,associat$ e/abli%$ -pon5ts ,if ! sci5tific rese>* & exp]i;tal develop;t is directly 3c]n$ only ) "s "ps (a sy/em or a te*nology1 & resolv+ ! te*nological unc]ta9ty _c 2 d"o )\t subsequ5tly modify+ o!r "ps1 !n ^! o!r "ps >e 3sid]$ associat$ e/abli%$ -pon5ts4 ,basel9e data ,basel9e data >e a set ( sci5tific or te*nological obs]v,ns & m1sure;ts t >e us$ z a base 9 fur!r /udies1 & ag/ : v>i,ns or *ange c 2 m1sur$4 ,examples >e pollu;n 9 a giv5 5viron;t1 nature & rate ( rejects on a produc;n l9e1 hydrological data 6develop a dynamic model ( hydrop[] capac;y1 etc4 ,busi;s 5viron;t ,busi;s 5viron;t "*i/ics 9clude busi;s size1 -peti;n1 >ea ( 9du/ry1 & a3ess 6te*nical res\rces4 ,= example1 #fd ,gloss>y a#ac an 5t]prise may n h practical a3ess 69=m,n propriet>y 6a -petitor1 or "kn 9 speciali/ or academic circles4 ,-m]cial produc;n ,-m]cial produc;n is ! set ( activities associat$ )! produc;n ( products1 & x is expect$ t a pr(it w 2 made4 ,-monly availa# s\rces ( k or exp]i;e ,-monly availa# s\rces ( k or exp]i;e >e ^? t c r1sonably 2 assum$ 6be r1dily availa# 6^? ) basic tra9+ or exp]i;e 9 ! field ( 3c]n4 ,^! res\rces 5a# !m 6be su6ici5tly qualifi$ 6"picipate 9 sci5tific rese>* & exp]i;tal develop;t4 ,!y al 9clude k t is availa# 9 ! busi;s 3text (! firm4 ,see al ! ,gloss>y 5try on 8,busi;s 5viron;t40 #fe ,gloss>y b#ac ,co/ t>gets & _! rel,n 6te*nological unc]ta9ty ,see ,"p #b.aj.b (! circul>4 ,cu/om>y product design or cu/om>y product evolu;n ,cu/om>y product design or cu/om>y product evolu;n is ! use ( g5],y "kn practices 6design or improve a product or process :5 "! is no ne$ 6resolve sci5tific or te*nological unc]ta9ty4 ,design ,design may 2 sep>at$ 965g9e]+ design & 9du/rial design4 ,5g9e]+ design is assembl+ e/abli%$ te*nological 9=m,n on any subject1 select+ :at"e is p]t95t1 & f x1 "w+ \ a practical1 economical1 & safe design4 ,if ! result does n meet expect,ns1 ! cause ( failure wd 2 ei ! 9correct applic,n ( 5g9e]+ pr9ciples1 or ]rors ( 9=m,n1 nei ( : wd #ff ,gloss>y c#ac 3/itute a defici5cy 9 ess5tial sci5tific or te*nological k4 ,9du/rial design is ! 3cep;n ( pot5ti,y m>keta# products ) due reg>d 6_! desir$ func;ns1 prop]ties ( mat]ials1 h>moni\s 9tegr,n ( -pon5ts1 possibilities (f]$ 0v>i\s fabric,n processes1 requir$ dim5.ns & %apes &1 9 g5]al1 aes!tic & economic 3sid],ns4 ,?us1 9du/rial design (t5 seeks 62come func;nal at m9imum co/4 ,5g9e]+ & 9du/rial design activities >e eligi# activities only :5 !y >e "utak5 directly 9 support ( projects t !mvs satisfy ! ?ree crit]ia specifi$ 9 ,"ps #b.i4 6#b.aj.c 9clusive4 ,directly 9 support ,an activ;y is 3sid]$ 6be directly 9 support ( sci5tific rese>* & exp]i;tal develop;t :5 x is r1sona# 62lieve t ! activ;y is requir$ 6c>ry \ ! #fg ,gloss>y d#ac sci5tific rese>* & exp]i;tal develop;t4 ,t is1 x has be5 %[n 6be an 9tegral "p (! sy/ematic 9ve/ig,n (a pro#m1 & is requir$ 9 ! se>* =a !oretical or practical solu;n4 ,hypo!sis ,a hypo!sis is a t5tative supposi;n ) reg>d 6an un"kn /ate ( a6airs1 ! tru? ( : is "!^u subject 69ve/ig,n 0any availa# me?od1 ei 0logical deduc;n ( 3sequ;es : may 2 *eck$ ag/ :at is "kn1 or 0direct exp]i;tal 9ve/ig,n or 4cov]y ( facts n hi!rto "kn & su7e/$ 0! hypo!sis 7,mc,graw-,hill1 ,3cise ,5cyclop$ia ( ,sci;e & ,te*nology74 ,9tuitive processes ,9tuitive processes >e ^? t give rise 6id1s )\t evid5t1 ord]$1 r,nal ?"\ or 9f];e4 ,s* activities c l1d 6hypo!ses = te/+ t >e a -pon5t ( exp]i;tal develop;t4 #fh ,gloss>y e#ac ,m>ket demon/r,n/cu/om] a3ept.e ,9 a sci5tific rese>* or exp]i;tal develop;t project1 m>ket demon/r,n or cu/om] a3ept.e does n 9clude 9t]ac;n )! cu/om] 6bett] def9e ! product's te*nological specific,ns & ?us 6bett] -------------------------------------#ad ori5t ! project's sci5tific rese>* & exp]i;tal develop;t activities4 ,m>ket rese>* ,m>ket rese>* 9cludes 7b n exclusively7 surveys 6det]m9e 3sum] attitudes 6exi/+ products1 or 6possi# new products4 ,! rese>*1 = example1 exam9es s* factors z buy+ habits1 use ( leisure "t1 3sum] ne$s or wants1 & attitudes t[>ds exi/+ products & new products 2+ te/-m>ket$4 ,sales promo;n is ! sell+ activ;y t supple;ts adv]tis+ & p]sonal sell+1 co-ord9at+ !m1 & mak+ !m e6ective4 #fi ,gloss>y a#ad ,m1n+;l adv.e ,a m1n+;l adv.e m1ns ! g5],n ( new k t reduces te*nological unc]ta9ty4 ,note t ? c 2 negative 7i4e41 ! s"\ result cd n 2 a*iev$7 or positive1 9 : case ! adv.e is embodi$ 9 ! result+ process or products or 9 new k4 ,see al ! ,gloss>y 5try on 8,sy/ematic 9ve/ig,n or se>*40 ,op],ns rese>* ,op],ns rese>* is an approa* usu,y 9volv+ ma!matical tr1t;t (a process1 pro#m1 or op],n 6det]m9e xs purpose & e6ective;s1 & 6ga9 maximum e6ici5cy4 ,pilot plant ,a pilot plant is a non-comm]cial scale plant 9 : process+ /eps >e sy/ematic,y 9ve/igat$ "u 3di;ns simulat+ a full produc;n unit4 ,! goals may be1 = example1 6/udy ! 2havi\r ( c]ta9 raw mat]ials1 develop an economic,y via# process = #gj ,gloss>y b#ad manufactur+ a new product or process or improve an exi/+ product or process1 modify equip;t = new applic,ns1 te/ new equip;t "u new 3di;ns1 produce samples (a cu/om product = sci5tific rese>*1 det]m9e 5viron;tal e6ects1 & s on4 ,! prim>y purpose (! pilot plant is 6obta9 5g9e]+ & o!r data ne$$ 6evaluate hypo!ses1 write product or process =mulae1 e/abli% f9i%$ product te*nical specific,ns1 or design special equip;t & /ructures requir$ 0a new or improv$ fabric,n process4 ,! 3/ruc;n & op],n (a pilot plant is a "p ( exp]i;tal develop;t1 z l;g z ! pr9cipal purposes >e 6obta9 exp]i;e1 & 6-pile 5g9e]+ & o!r data 6be us$ in3 --evaluat+ hypo!ses2 --writ+ new product =mulae2 --e/abli%+ new f9i%$-product specific,ns2 #ga ,gloss>y c#ad --design+ special equip;t & /ructures requir$ 0a new process2 or --prep>+ op]at+ 9/ruc;ns or manuals on ! process4 ,plann$ approa* ,plann$ approa* ref]s 6a situ,n 9 : "! is a record$ program ( "w ) sci5tific & te*nical 3t5t4 ,see al ! ,gloss>y 5try on 8,hypo!sis40 ,process optimiz,n & co/ reduc;n ,process optimiz,n & co/ reduc;n describe process develop;t ef=ts t h z _! objective improv$ e6ici5cies1 \tput qual;y1 or f9ancial or /rategic advantages4 ,al? ^! activities c / 2 eligi# :5 te*nological unc]ta9ty is 5c.t]$1 !y >e n usu,y 3sid]$ 6be sci5tific rese>* & exp]i;tal develop;t4 ,-pet5t manage;t (a -m]cial op],n usu,y reflects ! skills & k nec = grt] e6ici5cy1 & l[]s ! unit #gb ,gloss>y d#ad co/s ( produc;n4 ,!y >e repres5t$1 = example1 0! func;ns ( 9du/rial 5g9e]+1 "t & mo;n analysis1 me?ods 5g9e]+1 value analysis & 5g9e]+1 tool & ma*9e design1 etc4 ,:5 /&>d practices 9 ^! fields >e us$ 9 any situ,n requir+ an improve;t1 a tr5d t[>ds optimal 3di;ns w usu,y result1 &! law ( dim9i%+ returns w 2 ! only limit,n ^u atta9+ ! degree ( improve;t4 ,only if a te*nological unc]ta9ty m/ 2 ov]come w an eligi# activ;y exi/1 &! qualify+ co/s w 2 ^? ne$$ 6resolve ! te*nological pro#m4 ,prototype ,a prototype is an orig9al model on : "s?+ new is patt]n$1 &( : all ?+s (! same type >e repres5t,ns or copies4 ,x is a basic exp]i;tal model possess+ ! ess5tial "*i/ics (! 9t5d$ product4 ,! design1 3/ruc;n1 & te/+ ( prototypes g5],y fall )9 ! scope ( exp]i;tal develop;t4 ,? applies :e!r only #gc ,gloss>y e#ad "o or s"eal prototypes >e made1 & :e!r !y >e made at ! same "t1 or "o foll[+ ! o!r4 ,3/ruct+ s"eal copies (a prototype 6meet a tempor>y ne$ af su3ess;lly te/+ ! orig9al is n "p ( exp]i;tal develop;t4 ,r\t9e 5g9e]+ 8,r\t9e 5g9e]+0 is ! practice ( design+1 -pos+1 evaluat+1 advis+1 report+1 direct+1 or sup]vis+ ! 3/ruc;n or manufactur+ ( tangi# products1 assemblies1 sy/ems1 or processes t require in-dep? k ( 5g9e]+ sci;e1 &! prop]1 safe1 & economic applic,n ( 5g9e]+ pr9ciples4 ,0def9i;n1 & ac 6s.d profes.nal practice1 r\t9e 5g9e]+ practice does n 9volve apprecia# sci5tific or te*nological unc]ta9ty4 -------------------------------------#ae ,social sci;es ,! social sci;es 9clude 7b n exclusively7 economics1 #gd ,gloss>y a#ae geography1 law1 manage;t1 political sci;e1 & sociology4 ,! humanities 9clude1 = example1 >t1 philosophy1 languages1 hi/ory1 & religion4 ,psy*ology is al a social sci;e1 b psy*ological rese>* is n an exclud$ activ;y :5 x is "utak5 directly 9 support ( basic rese>*1 appli$ rese>*1 or exp]i;tal develop;t4 ,speciali/s ,a speciali/ 9 a field is "o :o has ga9$1 "? tra9+ or exp]i;e1 a significant "u/&+ 2y t usu,y expect$ f g5]al or only o3a.nal activ;y )9 t field4 ,! t]m 8speciali/s0 ref]s 65g9e]s or sci5ti/s hold+ a univ]s;y degree1 or ! equival5t1 z recogniz$ 0! appropriate lic5s+ body or profes.nal or sci5tific society1 or 69dividuals :o h "w$ 9 ! giv5 field ( te*nology or a closely relat$ "o =a significant p]iod 6be 3sid]$ 0_! pe]s 6h ga9$ exp]i;e 2y ! norm4 #ge ,gloss>y b#ae ,/yle *ange ,/yle *ange m1ns *ang+ ! physical appe>.e or >range;t ( an >ticle )\t alt]+ xs util;y1 e6ici5cy1 func;n1 or op]at+ "*i/ics4 ,sy/em unc]ta9ty ,sy/em unc]ta9ty is recogniz+ t -b9,ns ( te*nologies1 ! -pon5ts ( : >e g5],y well-"kn1 frequ5tly c>ry a risk ( fail+ 6p]=m 6a3epta# /&>ds4 ,?us1 :ile ea* 9dividual te*nology is "kn1 ! results ( 9t]ac;ns am;g !m z a :ole may n 2 "kn1 & m/ 2 det]m9$ 0a program ( sy/ematic 9ve/ig,n 6det]m9e ! results ( s* 9t]ac;ns4 ,sy/ematic 9ve/ig,n or se>* ,sy/ematic 9ve/ig,n or se>* is ! use (a me?od t usu,y 9cludes sci5tific or te*nological pro#m def9i;n1 hypo!sis =mul,n1 exp]i;tal te/s1 & deduc;n & 3clu.n 6>rive at new or improv$ products or processes1 or exp&$ #gf ,gloss>y c#ae k4 ,x 9cludes analyses "? physical1 *emical1 or biological exp]i;t,ns1 ma!matical or -put] simul,ns1 or o!r analytical te*niques4 ,te/+ protocols ,te/+ protocols >e ! /&>diz$ me?odologies or proc$ures us$ 9 sci5tific & te*nological 5d1v\rs4 ,tr\#-%oot+ ,tr\#-%oot+ is r\t9ely correct+ equip;t or processes 0id5tify+ pro#ms4 ,! goals may 2 6optimize a process 9 bo? ! te*nical or economic s5se1 6adju/ equip;t p]=m.e or 6evaluate x dur+ br1kd[ns1 improve "w+ 3di;ns1 m9imize produc;n losses1 or 63trol ! g5],n & 4posal ( wa/es4 ,tr\#-%oot+ o3a.n,y br+s \ ! ne$ = fur!r sci5tific rese>* & exp]i;tal develop;t1 b m frequ5tly x 9volves detect+ faults 9 equip;t or #gg ,gloss>y d#ae processes1 & results 9 m9or modific,ns ( /&>d equip;t & processes4 ,s* detec;n & modific,n is n sci5tific rese>* & exp]i;tal develop;t4 ,via# program ,a via# program is "o t is bas$ on approa*es & me?ods t >e 9h]5tly capa# ( resolv+ ! te*nological unc]ta9ty 9 "q 7result+ 9 ei su3ess or failure1 z ! case may be74 #gh