,canada ,cu/oms
            & ,rev5ue ,ag5cy

            ,9=m,n ,circul>
               ,,ic#id-b
       ,ma*9]y & ,equip;t ,9du/ry
            ,applic,n ,pap]

              ,9 "o volume
           ,pr9t pages #a-ae
       ,brl pages ;i-iii & #a-gh
    
































                 ,9dex
                               ,brl page
,9=m,n ,circul> """"""""""""""""""""" #a
  ,ma*9]y & ,equip;t ,9du/ry
    ,applic,n ,pap] """"""""""""""""" #b
  ,ta# ( ,3t5ts """"""""""""""""""""" #b
#a ,9troduc;n """"""""""""""""""""""" #d
#b ,9du/ry backgr.d """"""""""""""""" #f
  #b.a ,activities1 projects1 &
    programs """"""""""""""""""""""" #ac
  #b.b ,major types ( te*nology """" #ad
#c ,project eligibil;y--,g5]al """"" #ae
  #c.a ,busi;s 5viron;t """""""""""" #ag
  #c.b ,crit]ia & 9dicators--
    ,eligi# projects """"""""""""""" #ah
  #c.c ,sci5tific or te*nological
    adv.e;t """""""""""""""""""""""" #ai
  #c.d ,sci5tific or te*nological
    unc]ta9ty """""""""""""""""""""" #bc
  #c.e ,sci5tific & te*nical 3t5t "" #bh
#d ,project eligibil;y--,special
  issues """"""""""""""""""""""""""" #cj
  #d.a ,-plete new ma*9]y
    develop;t """""""""""""""""""""" #ca
                                      ;i
                 ,9dex
  #d.b ,te*nological 5h.e;t (
    curr5t ma*9]y """""""""""""""""" #cb
  #d.c ,/&-al"o s(tw>e develop;t """ #ce
  #d.d ,te*nical f1sibil;y /udies "" #cg
  #d.e ,process improve;ts """"""""" #cg
    #d.e.a ,3t9u\s improve;t """"""" #ch
    #d.e.b ,te/+ 6demon/rate
      te*nological adv.e;t """"""""" #dj
  #d.f ,ma*9e us] 9t]face """""""""" #db
  #d.g ,2ta site te/+ """""""""""""" #dc
  #d.h ,tr\#-%oot+1 debu7+1 & f9e-
    tun+ """"""""""""""""""""""""""" #de
  #d.i ,sy/em unc]ta9ty """""""""""" #df
  #d.aj ,prototypes1 cu/om
    products/processes1 & -m]cial
    assets """"""""""""""""""""""""" #ej
    #d.aj.a ,prototypes """""""""""" #ea
    #d.aj.b ,cu/om
      products/processes & -m]cial
      assets--cu/om develop;t """""" #eb
#e ,docu;t,n """"""""""""""""""""""" #ed
  #e.a ,te*nical 9=m,n require;t =
    claims3 ,=m ,t#ffa """"""""""""" #eg
                                     ;ii
                 ,9dex
#f ,examples ( self-assess;t (a
  claim """""""""""""""""""""""""""" #fj
  ,objective (! project """""""""""" #fa
  ,-pany backgr.d """""""""""""""""" #fa
  ,plan """""""""""""""""""""""""""" #fe
  ,analysis/exp]i;t,n """""""""""""" #fe
  ,sy/em 3/ruc;n & te/+ """""""""""" #fg
  ,results & summ>y """""""""""""""" #fi
  ,id5tific,n (! ,,sr&,,ed project   #gj
#g ,gloss>y """""""""""""""""""""""" #gf
  ,activ;y """"""""""""""""""""""""" #gf
  ,analysis """""""""""""""""""""""" #gf
  ,5velope ( ,,sr&,,ed """"""""""""" #gg
  ,exp]i;t,n """"""""""""""""""""""" #gg
  ,9cre;t """""""""""""""""""""""""" #gg
  ,process develop;t """"""""""""""" #gh







                                    ;iii

























,canada ,cu/oms                       #a
& ,rev5ue ,ag5cy

            ,9=m,n ,circul>
    
,subject3 ,sci5tific ,rese>* &
  ,exp]i;tal ,develop;t
,numb]3 #id-b ,ma*9]y & ,equip;t ,9du/ry
  ,applic,n ,pap]
,date3 ,june #bd1 #aiid

  ,! purpose ( ? applic,n pap] is 6assi/
applicants )9 ! ma*9]y & equip;t 9du/ry1
,rev5ue ,canada 9 9t]pret+ h[ ! curr5t
v].n ( ,9=m,n ,circul> #hf-d1 ,sci5tific
,rese>* & ,exp]i;tal ,develop;t1
7,,ic#hf-d71 applies 6? 9du/ry sector4







                                      #a
       ,ma*9]y & ,equip;t ,9du/ry    a#a
            ,applic,n ,pap]
    
             ,ta# ( ,3t5ts
    
#a ,9troduc;n """"""""""""""""""""""" #b
#b ,9du/ry ,backgr.d """""""""""""""" #b
  #b.a ,activities1 ,projects &
    ,programs """"""""""""""""""""""" #c
  #b.b ,major ,types ( ,te*nology """ #c
#c ,project ,eligibil;y--,g5]al """"" #d
  #c.a ,busi;s ,5viron;t """""""""""" #d
  #c.b ,crit]ia/,9dicators--
    ,eligi# ,projects """"""""""""""" #d
  #c.c ,sci5tific or ,te*nological
    ,adv.e;t """""""""""""""""""""""" #d
  #c.d ,sci5tific or ,te*nological
    ,unc]ta9ty """""""""""""""""""""" #e
  #c.e ,sci5tific & ,te*nical
    ,3t5t """"""""""""""""""""""""""" #f
#d ,project ,eligibil;y--,special
  ,issues """"""""""""""""""""""""""" #g
  #d.a ,-plete ,new ,ma*9]y
    ,develop;t """""""""""""""""""""" #g
                                      #b
             ,ta# ( ,3t5ts           b#a
  #d.b ,te*nological ,5h.e;t (
    ,curr5t ,ma*9]y """"""""""""""""" #g
  #d.c ,/& ,al"o ,s(tw>e
    ,develop;ts
  #d.d ,te*nical ,f1sibil;y
    ,/udies """"""""""""""""""""""""" #h
  #d.e ,process ,improve;ts """"""""" #h
    #d.e.a ,3t9u\s ,improve;t """"""" #h
    #d.e.b ,te/+ 6,demon/rate
      ,te*nological ,adv.e;t """""""" #h
  #d.f ,ma*9e ,us] ,9t]face """"""""" #i
  #d.g ,2ta ,site ,te/+ """"""""""""" #i
  #d.h ,tr\#-,%oot+1 ,debu7+ &
    ,f9e-tun+ """"""""""""""""""""""" #i
  #d.i ,sy/em ,unc]ta9ty """""""""""" #i
  #d.aj ,prototypes1 ,cu/om
    ,products/,processes &
    ,-m]cial ,assets """"""""""""""" #aj
    #d.aj.a ,prototypes """""""""""" #aj
    #d.aj.b ,cu/om
      ,products/,processes &
      ,-m]cial ,assets--cu/om
      develop;t """""""""""""""""""" #aa
                                      #c
             ,ta# ( ,3t5ts           c#a
#e ,docu;t,n """"""""""""""""""""""" #aa
  #e.a ,te*nical ,9=m,n
    ,require;ts = ,claims3 ,=m
    ,t#ffa """"""""""""""""""""""""" #aa
#f ,examples ( ,self-,assess;t (a
  ,claim """"""""""""""""""""""""""" #ab
#g ,gloss>y """""""""""""""""""""""" #ae
--------------------------------------#b
             #a ,9troduc;n
    
  ,subsec;n #bijj7#a7 (! ,9come ,tax
,regul,ns 7! ,regul,ns7 def9es :at
3/itutes ,sci5tific ,rese>* & ,exp]i;tal
,develop;t 7,,sr&,,ed74 ,we issu$ ,9=m,n
,circul> #hf-d1 ,sci5tific ,rese>* &
,exp]i;tal ,develop;t1 7! circul>7
6cl>ify ! "w t lies )9 ! b.d>ies (
,,sr&,,ed1 & develop$ applic,n pap]s1 z
supple;ts 6! circul>1 6a4ress issues
specific 6"picul> 9du/ries4 ,^! pap]s >e
adjuncts 6! circul> & d n ov]ride x4
  ,we h prep>$ ? applic,n pap] 6improve
! "u/&+ ( ,,sr&,,ed z x specific,y
relates 6! ma*9]y & equip;t           #d
             #a ,9troduc;n           a#b
manufactur+ 9du/ry 9 ,canada4 ,! pap] is
9t5d$ 6cl>ify :at 3/itutes ,,sr&,,ed1 &
6help claimants self-assess _! claims4
,we w update ! applic,n pap] z requir$
6reflect *ang+ te*nology & o!r issues t
>ise4 ,! 9=m,n 3ta9$ 9 ! applic,n pap]
3c]ns only te*nical issues 9volv$ 9
"*iz+ eligi# ,,sr&,,ed projects4 ,"qs
relat+ 6all[a# exp5ditures1 :e!r capital
or curr5t1 >e n d1lt ) 9 ? pap] except
": sci;e advisor 9put is requir$4
,exp5diture issues >e cov]$ 9 ,9t]pret,n
,bullet9 ,,it-#aea1 ,sci5tific ,rese>* &
,exp]i;tal ,develop;t ,exp5ditures4 ,x
is important 6note t1 ev5 if a project
is eligi#1 x does n m1n t all ! project
co/s >e eligi#2 ? is 4cuss$ fur!r 9 ,"ps
#d.e1 #d.i1 & #d.aj ( ? pap]1 z well z 9
,9t]pret,n ,bullet9 ,,it-#aea4
  ,= purposes ( subsec;n #bijj7#a7 (!
,regul,ns1 develop+ or improv+ ma*9]y &
equip;t & processes = xs manufacture is
3sid]$ 6fall )9 a field ( te*nology4
,te*nology is ref]r$ 6in p>agraph     #e
             #a ,9troduc;n           b#b
#b.c (! circul> z 8! sy/ematic /udy (!
applic,n ( sci5tific k 69du/rial
processes or product develop;t40
  ,! objective (! 9c5tives relat$
6,,sr&,,ed is 65c\rage ! adv.e;t (
te*nology 9 ,canadian-develop$ products
& processes4 ,? w fo/] ! -petitive;s (
,canadian products 9 ! 9t]n,nal
m>ketplace4 ,adv.e;t ( te*nology m/ 2
se5 6o3ur )9 ! busi;s 5viron;t & 3text
(! claimant4
  ,9 ,"p #f1 we provide an example
6illu/rate ! self-assess;t (! claim4

          #b ,9du/ry backgr.d
    
  ,! ma*9]y & equip;t manufactur+ sector
( ,canadian 9du/ry is repres5t$ 0_m
types ( busi;ses 9clud+ equip;t 9v5;n1 !
build+ & manufactur+ ( equip;t1 ma*9]y
retrofits & 9/all,n1 preci.n ma*9+1
mat]ials process+ & process develop;t or
improve;t4 ,busi;ses range 9 size f ! v
small1 6! l>ge & multi-n,nal4         #f
          #b ,9du/ry backgr.d        c#b
  ,projects range f %ort-dur,n1 hi<ly
focus$ -pon5t improve;ts1 6multi-ye> new
equip;t develop;t4 ,"s examples ( ma*9]y
& equip;t 9clude produc;n equip;t1 ma*9+
tools & equip;t1 labell+ equip;t1
packag+ sy/ems1 metal =m+ equip;t1
pla/ics m\ld+ or 9jec;n equip;t1
agricultural ma*9]y & equip;t us$ 9 !
extractive 9du/ries4
  ,te*nical capabilities &! te*nological
sophi/ic,n ( -panies 9 ? 9du/ry sector
span a wide range4 ,typic,y1 projects >e
8practic,y ori5t$0 6ma*9]y build+ &
develop;t & product or process improve;t
"? te*nological 9nov,n4 ,? ori5t,n l1ds
t[>ds appli$ rese>* or exp]i;tal
develop;t r ?an basic rese>* 3duct$ 0!
claimant4 ,9 _m cases1 basic rese>* does
n directly prec$e appli$ rese>* or
exp]i;tal develop;t4 ,appli$ rese>* may
9clude "w on improv+ exi/+ te*nology4
  ,! result+ scale ( improve;t may range
f 9cre;tal 7a small improve;t71
6evolu;n>y 7! next logical g5],n (    #g
          #b ,9du/ry backgr.d        d#b
ma*9e71 6revolu;n>y 7a dramatic,y di6]5t
type ( ma*9e74 ,s* "w may 2 eligi#
,,sr&,,ed4
  ,)9 ? 9du/ry sector1 _m organiz,ns d n
h te*nical speciali/s :o h recogniz$
7lic5s$7 design,ns4 ,h["e1 ? does n
limit ! abil;y (! claimant's p]sonnel )!
k & exp]i;e 6develop ma*9]y & equip;t "?
appli$ rese>* or exp]i;tal develop;t4
  ,! nature (! equip;t 2+ develop$ )9 ?
9du/ry requires organiz,ns to 8/ret* !
capabil;y 5velope0 ( exi/+ te*nology4 ,=
example1 m>ket driv5 te*nical require;ts
= hi<] spe$ or grt] a3uracy >e (t5 2y !
capabilities ( exi/+ ma*9]y4 ,x is (t5
"? processes ( exp]i;tal develop;t t !
capabilities ( exi/+ ma*9]y >e 5h.ed4
  ,te*nological 9nov,n may al 2 requir$
= in-h\se produc;n processes4 ,(t5 !
require;ts = in-h\se process+ _c 2
atta9$ us+ -m]ci,y availa# products1
"!=e1 ! exp]i;tal develop;t ef=t is aim$
at develop+ improv$ processes4
                                      #h
          #b ,9du/ry backgr.d        e#b
  ,)9 ? 9du/ry1 "! >e _m 9/.es :5
projects d1l+ 9 cu/omiz$ or 8"o-(f0
products >e "utak54 ,frequ5tly1 a cu/om
develop;t 9volves 5h.e;ts 6exi/+ product
l9es or processes4 ,^! improv$ products
or processes may result 9 a salea#
-mod;y4 ,9 mo/ cases1 ? type ( develop;t
is an attempt 6take advantage (! 8w9d[ (
busi;s opportun;y0 = product 5h.e;t4
--------------------------------------#c
  ,! develop;t process ( ? 9du/ry c
9clude ! foll[+ /eps1 b ! /eps !mvs d n
e/abli% ! eligibil;y (! project3
    --\tl9+ specific,ns or require;ts
      def9$ 0! cu/om]2
    --?9k+ 9tuitively 7mak+ a hypo!sis7
      ab h[ ! cu/om]'s require;ts c 2
      met2
    --def9+ ! te*nical objectives 6be
      met2
    --def9+ ! develop;t project 6meet
      te*nical objectives2
    --=maliz+ a 3cept or model2
                                      #i
          #b ,9du/ry backgr.d        a#c
    --3duct+ exp]i;tal & analytical
      activities 6te/ ! 3cept & model1
      9clud+ -put]iz$ modell+2
    --mak+ it]ative ref9e;ts 9 ! 3cept
      or model2 &
    --det]m9+ ! economic f1sibil;y &
      te*nical su3ess (! project4
  ,6qualify z eligi# ,,sr&,,ed1 projects
d n h 6be "utak5 bas$ on a =mal hypo!sis
or premise4 ,! hypo!sis may 2 9tuitive4
,9tuitive ?"\ c replace a =mal hypo!sis
if "! is a 3cept t c 2 =maliz$ 6=m
te*nical objectives4 ,h["e1 x is
important t ^! te*nical objectives 2
e/abli%$ at ! />t (! exp]i;tal develop;t
project1 b ? 9 xf does n qualify !
project z eligi# ,,sr&,,ed4
  ,9 ? 9du/ry sector1 ! t]ms 5g9e]+ &
design >e us$ 9t]*angeably4 ,? is 9
3tra/ 6! g5]al or aes!tic m1n+ (t5 giv5
6! t]m design 9 "s o!r 9du/ries4
  ,3cepts ( exp]i;tal design & adv.ed
pro#m solv+ te*niques >e employ$ :5
det]m9+ alt]nate approa*es           #aj
          #b ,9du/ry backgr.d        b#c
6develop+ a te*nical solu;n4 ,(t5 !
objectives ( ^! te*niques >e express$ z
a desire 6correct a specific defici5cy1
or a*ieve a specific op],nal capabil;y4
,?us1 ! 9tuitive approa* 6solv+ pro#ms1
foll[$ 0a sy/ematic process ( te/+1 is
(t5 "p (! exp]i;tal develop;t project4
  ,dur+ ! develop;t cycle1 "! >e (t5 two
or m 8v].ns0 or 8g5],ns0 (! same ma*9e1
) ea* g5],n possess+ grt] capabil;y or
5h.e;ts ov] ! g5],n t prec$$ x4 ,(t5
su3e$+ g5],ns 5h.e ! capabil;y (!
pr$ecessor g5],n1 &/or improve ! price
p]=m.e (! ma*9e4
  ,9 ? type ( develop;t cycle1 ! f/
g5],n ma*9e t is bas$ on ! 9itial 3cept
cd 2 unsophi/icat$1 b te*nologic,y
adv.ed4 ,? model c 2 us$ 6prove !
te*nical f1sibil;y (! project4 ,9 "s
9/.es1 ? f/ g5],n ma*9e w 2 sold
6satisfy a specific cu/om] dem& or is
us$ in-h\se4 ,subsequ5t ma*9es t >e
t>get$ at m specific applic,ns >e
develop$ bo? 65h.e ! te*nical        #aa
          #b ,9du/ry backgr.d        c#c
capabil;y (! f/ ma*9e1 & al 69ve/igate
specific alt]natives4
  ,9 ? 9du/ry1 -plet+ a project 6>rive
at a 3clu.n may require field te/+1
field modific,n1 & field 9ve/ig,n
6demon/rate t ! te*nological objective
has be5 met4 ,(t5 ? require;t >ises 2c !
equip;t is full scale or _c 2 te/$ 9
isol,n )\t ! full process 5viron;t4 ,!
results ( ? 9ve/ig,n >e nec 6>rive at a
3clu.n4
  ,typic,y1 product & process 9nov,ns h
"*i/ics t 9clude3
    --a new or improv$ capabil;y (a
      ma*9e1 equip;t1 or process :
      demon/rates te*nological adv.e;t2
    --te*nologic,y bas$ adv.e;t : cd h
      applic,ns = o!r product l9es
      7i4e41 ! develop;t applies 6a
      range ( products or processes72
    --! 9itial m>ket-driv5 specific,n cd
      n 2 atta9$ 0claimants 9 _! busi;s
      3text1 &a te*nological b>ri] 0
      id5tifi$ 2f ! develop;t4       #ab
      #b.a ,activities1 projects1    d#c
               & programs
    
  ,"! is a hi]>*y ( t]ms us$ 9 describ+
! ,,sr&,,ed ef=t4 ,! top level is a
.program1 : may 3si/ (a numb] (
.projects t typic,y h a numb] ( l9k$
.activities4 ,al? "! is no ne$ 6h an
umbrella program1 x is nec 63sid] !
eligibil;y ( projects =! purpose ( meet+
! require;ts ( subsec;n #bijj7#a7 (!
,regul,ns4 ,? is necess>ily s 2c 9 !
3text ( rese>* & develop;t 9 sci;e &
te*nology 9dividual activities may 2
r\t9e or /&>d practice1 s* z 5g9e]+ &
design1 b >e l9k$ 6hi< level -mon
te*nological objectives4 ,^! 9dividual
activities may only 2 eligi# if !y >e
"utak5 directly 9 support ( eligi#
projects4 ,h["e1 ? does n rule \
9dividual activities 2+ eligi# on _! [n
m]its if !y meet ! require;ts ( subsec;n
#bijj7#a7 (! ,regul,ns4 ,activ;y is
def9$ 9 ! 8,gloss>y0 6? pap]4
                                     #ac
          #b ,9du/ry backgr.d        e#c
..,det]m9,n ( eligibil;y is norm,y made
at ! project .level4
  ,)9 ? pap]1 we ref] 6eligi# projects &
qualifi$ activities 6denote ^? projects
& activities t we 3sid] eligi# =
,,sr&,,ed purposes4

     #b.b ,major types ( te*nology
    
  ,! major types ( te*nology t >e fur!r
develop$ 0memb]s ( ? 9du/rial sector
draw ^u1 b >e n limit$ to1 ! foll[+
4cipl9es3
--------------------------------------#d
    --me*anical 5g9e]+ or me*anical
      design2
    --mat]ials capabil;y 7us+
      unconv5;nal mat]ials 6meet 9cr1s$
      me*anical dem&s or reduce co/1
      wei<t1 etc472
    --electrical & electronics 5g9e]+1 &
      electrical & electronics design2 &
    --s(tw>e 5g9e]+ & design4
                                     #ad
        #c ,project eligibil;y--     a#d
                 ,g5]al
    
  ,! def9i;n ( ,,sr&,,ed is set \ 9
subsec;n #bijj7#a7 (! ,regul,ns1 & is
fur!r cl>ifi$ 9 ,"ps #b.b 6#b.e (!
circul>4 ,a key por;n (! def9i;n (
,,sr&,,ed1 z 3ta9$ 9 subsec;n #bijj7#a7
(! ,regul,ns1 is3
  8''' sci5tific rese>* & exp]i;tal
  develop;t m1ns .sy/ematic .9ve/ig,n or
  .se>* c>ri$ \ 9 a field ( sci;e or
  te*nology 0m1ns ( .exp]i;t or
  .analysis '''0

  ,9 pr9ciple1 :5 ^! ele;ts c 2
demon/rat$1 eligibil;y exi/s4
  ,a lot (! product develop;t 9 ?
9du/rial sector results f "w "utak5
6meet 3tract require;ts 6deliv] equip;t
) specifi$ p]=m.e "*i/ics or
capabilities 7cu/om develop;t74 ,!
specific pro#m 9 ^! situ,ns is h[
64t+ui% 2t exp]i;tal & r\t9e develop;t4
                                     #ae
         #c ,project eligibil;y      b#d
  ,z 4cuss$ 9 sec;n #d (! circul>1
,"*i/ics ( ,exp]i;tal ,develop;t1 !
9corpor,n ( capabilities 8n previ\sly
exi/+ or availa# 9 /&>d practice 96a new
or exi/+ product or process0 may 3/itute
a te*nological adv.e if p]=m.e is 5h.ed4
,g5],y1 ! exp]i;tal develop;t project is
! te*nological adv.e 9corporat$ 96!
cu/om develop;t4 ,x is crucial t
claimants 9volv$ 9 cu/om product
develop;t claim only ! "w relat$ 6!
5h.e;ts 7! ,,sr&,,ed project7 6_! exi/+
/&>d practice4
  ,! subsequ5t -m]cial sale or use (!
result+ product1 device1 or process1 is
n a factor :5 det]m9+ project
eligibil;y1 s9ce x is n relevant 6!
9tr9sic eligibil;y ( ? "w4 ,h["e1 x is
g5],y an 9dic,n t ! exp]i;tal develop;t
has be5 -plet$1 & eligibil;y c1ses4 ,!
relevant issue 9 prov+ eligibil;y z
,,sr&,,ed is :e!r ! "w has ! "*i/ics (
,,sr&,,ed reg>d.s (! ov]all goals 9 a
-m]cial s5se4                        #af
         #c ,project eligibil;y      c#d
  ,! tr1t;t (! proce$s ( sale is an
exp5diture issue t is cov]$ 9 ,9t]pret,n
,bullet9 ,,it-#aea4 ,project eligibil;y
m/ 2 det]m9$ ) reg>d 6! te*nical
activities &! "t frame 9 : ! project 0
c>ri$ \4
  ,! ?ree ess5tial crit]ia t .m/ 2 met
2f any "w c 2 3sid]$ eligi# ,,sr&,,ed1 z
detail$ 9 ,"p #b.aj (! circul>1 >e3
    --sci5tific or te*nological adv.e;t2
    --sci5tific or te*nological
      unc]ta9ty2 &
    --sci5tific & te*nical 3t5t4
  ,! foll[+ sec;ns provide a brief
explan,n ( ea* crit]ion4

         #c.a ,busi;s 5viron;t
    
  ,! ?ree crit]ia (! circul> m/ 2 appli$
)9 ! 3text (! claimant's busi;s 5viron;t
7busi;s 3text1 z def9$ 9 ,app5dix ,a (!
circul>74

                                     #ag
         #c ,project eligibil;y      d#d
  ,busi;s 5viron;t "*i/ics 9clude busi;s
size1 -peti;n1 >ea ( 9du/ry1 & a3ess
6te*nical res\rces4

      #c.b ,crit]ia & 9dicators--
            ,eligi# projects
    
  ,9 relatively simple t]ms1 a project
is eligi# = ,,sr&,,ed if xs objective is
6adv.e te*nology1 )9 ! claimant's busi;s
3text1 0resolv+ a te*nological unc]ta9ty
9 a sy/ematic mann] us+ 9dividuals :o >e
skill$ 9 ! te*nologies 9volv$4
  ,due 6! div]s;y ( activities 9 !
ma*9]y & equip;t manufactur+ sector1
-preh5sive te/s h n be5 devis$ 6det]m9e
! pot5tial eligibil;y ( projects4 ,h["e1
an attempt has be5 made 6devise 83di;ns0
& 8te*nical 9dicators0 6det]m9e :e!r !
3sid],ns \tl9$ 9 ,"p #b (! circul> >e
satisfi$4 ,specific,y3
    --.,3di;ns >e te/s t m/ 2 satisfi$
      if ! require;t 2+ te/$ is 6be met4
      ,! meet+ ( any 3di;n or        #ah
         #c ,project eligibil;y      e#d
      3di;ns1 h["e1 may n 2 5 6%[ t a
      require;t is satisfi$4
    --.,te*nical .9dicators >e te/s t
      prove t a "picul> require;t may h
      be5 met4
  ,3di;ns provide /r;g] evid;e ?an
te*nical 9dicators4

           #c.c ,sci5tific or
          te*nological adv.e;t
    
  ,! crit]ion ( sci5tific or
te*nological adv.e;t is def9$ 9 ,"p #d.a
(! circul> z3
  8''' ! 9corpor,n1 0m1ns ( exp]i;tal
  develop;t1 (a "*i/ic 7capabil;y71 n
  previ\sly exi/+ or availa# 9 /&>d
  practice1 96a new or exi/+ process or
  product t 5h.es xs p]=m.e0

  ,! p>agraph 9 "q 3t9ues on 6su7e/ t
novelty1 unique;s1 or 9nov,n al"o does n
9dicate ! exi/;e (a te*nological
adv.e;t4                             #ai
         #c ,project eligibil;y       #e
  ,te*nical 9=m,n is (t5 (a propriet>y
nature t limits ! abil;y ( claimants
6ga9 a3ess 69=m,n "kn 6o!r claimants1
speciali/s1 or 9 academic circles4
,memb]s ( ? 9du/ry may n 2 closely
associat$ ) speciali/s 9 academic
circles4
  ,z previ\sly m5;n$ 9 ,"p #b1 memb]s (
? 9du/ry >e (t5 requir$ to 8/ret* !
capabil;y 5velope0 ( exi/+ te*nology3
6provide grt] tol].e1 grt] spe$s1 &
g5]al p]=m.e improve;ts4 ,? c & does
result 9 advanc+ te*nologies )9 ! busi;s
3text (! memb]s &1 m (t5 ?an n1 advanc+
te*nologies )9 ! public doma94 ,!
te*nology base 9 ! public doma9 c 2
3sid]$ t level ( k r1dily availa# 6!
claimants4 ,! claimants' level (
te*nological k )9 _! busi;s 3text is a
-b9,n (! body ( k 9 ! public doma9 z
well z ! claimants' [n propriet>y k be/
typifi$ 0curr5t products & propriet>y k
availa# only 6!m4 ,9 ^? situ,ns ": !
solu;ns (! unc]ta9ties or pro#ms     #bj
         #c ,project eligibil;y      a#e
>e r1dily availa# 9 ! public doma91 !
develop;t wd n qualify z an eligi#
project4 ,z well1 6meet ! adv.e;t
crit]ion1 claimants m/ demon/rate t !
exp]i;tal develop;t "w goes 2y ! /&>d
practice ( _! organiz,n1 s* t a project
w 2 3sid]$ 6fall \tside ( r\t9e 5g9e]+
7: is def9$ 9 ! 8,gloss>y0 9 ! circul>74
  ,te*nological adv.e;t c o3ur ev5 if a
project is n su3ess;lly -plet$4 ,0%[+ :y
a "picul> approa* w n su3e$ or may n
meet ! desir$ te*nical objectives1 a
claimant's k ( equip;ts' pot5tial
te*nical capabilities c 9cr1se4 ,9 "s
9/.es1 ! claimant may n h be5 a# 6a*ieve
! project's objectives af hav+ exhau/$
all ! plann$ te*nological approa*es1 & 9
! process le>n$ ! r1sons =! failure4
  ,3di;ns & te*nical 9dicators : wd
provide evid;e ( sci5tific or
te*nological adv.e;t 9clude3
  .,3di;ns
    --a demon/rat$ 9cr1se 9 ! claimant's
      te*nological k base s* z !     #ba
         #c ,project eligibil;y      b#e
      9troduc;n ( an improv$ or new
      product or process bas$ on !
      results (! exp]i;tal "w "utak52 or
      9 ! case ( an unsu3ess;l project1
      ! abil;y 6expla9 ! te*nological
      basis (! failure2
    --! fact t ! te*nological k requir$
      6develop a new or improv$ product
      or process is n r1dily a3essi# 7z
      def9$ "u 8-monly availa# s\rces (
      k or exp]i;e0 9 ! gloss>y ( t]ms 9
      ! circul>7 6! claimant2 &
    --! new or improv$ product or
      process repres5ts an adv.e 9 !
      claimant's te*nology4
  ,te*nical 9dicators
    --an 5h.e;t ( capabil;y 7e4g41
      autom,n or range ( applic,n72
    --an improve;t 9 p]=m.e 9dicators
      7e4g41 spe$1 wei<t1 tol].e1 etc472
    --a new develop;t specific 6a
      "picul> product1 process1 or
      require;t 7e4g41 exp]i;tal
                                     #bb
         #c ,project eligibil;y      c#e
      develop;t ( automat$ design
      s(tw>e72
    --cu/om] 5quiries = 5h.ed
      capabilities 2y curr5t equip;t
      op]at+ capabilities2 &
    --cu/om] -pla9ts reg>d+ te*nological
      capabilities 9 exi/+ ma*9]y or
      equip;t

           #c.d ,sci5tific or
         te*nological unc]ta9ty
    
  ,! def9i;n ( sci5tific or te*nological
unc]ta9ty is 3ta9$ 9 ,"p #b.aj.b (!
circul>4 ,sci5tific or te*nological
unc]ta9ty c o3ur 9 ei ( two ways3
    7a7 x may 2 unc]ta9 :e!r ! goals c 2
      a*iev$ at all2 or
    7b7 ! claimant may 2 fairly 3fid5t t
      ! goals c 2 a*iev$1 b may 2
      unc]ta9 : ( s"eal alt]natives
      7i4e41 pa?s1 r\tes1 approa*es1
      equip;t 3figur,ns1 sy/em
      >*itectures1 circuit           #bc
         #c ,project eligibil;y      d#e
      te*niques1 etc47 w ei "w at all1
      or 2 f1si# 9 ord] 6meet ! desir$
      specific,ns &/or co/ t>gets4
  ,9 7a71 ! unc]ta9ty is due 69su6ici5t
te*nological k4 ,,sr&,,ed is ! process
"utak5 6adv.e ! te*nological k 6elim9ate
! unc]ta9ty4
  ,9 7b71 ! def9i;n su7e/s t ! te*nical
objective c 2 met 9 a numb] ( ways1 ev5
:5 ! claimant is fairly c]ta9 ( su3ess 9
meet+ ! te*nical goals (! project4 ,=
example1 "! may 2 unc]ta9ty ab : (!
s"eal alt]native approa*es 6! pro#m w
"w1 or : w a*ieve ! product co/ t>gets4
,"!=e1 all approa*es may h 6be tri$4 ,"!
may al 2 unc]ta9ty ab : (! s"eal
alt]native approa*es w a*ieve ! desir$
specific,ns &! product co/ t>gets4 ,!
def9i;n recognizes t1 :ile mo/ exp]i;tal
develop;t c su3e$ 9 a te*nical s5se giv5
an 9f9ite am.t ( "t & m"oy1 attempt+
6a*ieve a "picul> co/ t>get c at "ts
cr1te a te*nological *all5ge : ne$s 6be
resolv$4                             #bd
         #c ,project eligibil;y      e#e
  ,busi;s risk relat+ 6! project's
su3ess or failure 9 ! m>ketplace is n
relevant 6project eligibil;y4 ,!
ultimate assess;t = eligibil;y w 2 bas$
--------------------------------------#f
^u ! te*nological "*i/ics &! abil;y (!
project 6meet ! ?ree ess5tial crit]ia (
sci5tific or te*nological adv.e;t1
sci5tific or te*nological unc]ta9ty1 &
sci5tific & te*nical 3t5t4
  ,x is crucial = project eligibil;y t
te*nological unc]ta9ties >e id5tifi$ 2f
a specific project is "utak51 & t ^!
unc]ta9ties >e a4ress$ dur+ ! design &
develop;t (! f/ & subsequ5t g5],ns (
equip;t4 ,if "! >e no id5tifia#
te*nological unc]ta9ties at ! />t1 !n "!
c 2 no eligi# project4 ,h["e1 :5 new
te*nological unc]ta9ties >ise dur+ !
c\rse ( r\t9e "w1 ! activities direct$
at resolv+ ! te*nological unc]ta9ties
may 2 eligi#4
  ,te*nological unc]ta9ties (t5 >ise )9
! 9du/ry f ! ne$ 6meet r1sona#       #be
         #c ,project eligibil;y      a#f
product co/ t>gets s t a product c 2
sold at a price ! m>ket w be>4 ,typic,y1
co/ t>gets =! deliv]y (! product require
t unc]ta9 pa?s 2 3sid]$1 al? m co/ly &
relatively c]ta9 alt]natives exi/ ei )9
! claimant's busi;s 3text1 or 9 ! public
doma94 ,9 ? case1 ! exi/;e (a
te*nologic,y c]ta9 alt]native wd n
automatic,y negate ! eligibil;y (a
project d$icat$ 6se>*+ or exp]i;t+ 9
ord] 6assess ! te*nical f1sibil;y ( ^!
alt]native r\tes1 pa?s1 or sy/em
3figur,ns4 ,! claimant has 6id5tify !
pa?s &! te*nological adv.e;t associat$
)! v>i\s pa?s 6meet ! crit]ion (
te*nological unc]ta9ty4
  ,failure 6meet r1sona# co/ t>gets may
2 caus$ 0_m v>ia#s4 ,! 9abil;y 6meet
re/rictive or ambiti\s co/ t>gets does n
9 xf prove te*nological unc]ta9ty4 ,ea*
project m/ 2 assess$ on a case-by-case
basis4

                                     #bf
         #c ,project eligibil;y      b#f
  ,3di;ns & te*nical 9dicators t wd
provide evid;e ( sci5tific or
te*nological unc]ta9ty 9clude3
  .,3di;ns
    --! result 0 n a*iev$ 2f us+ !
      claimant's /&>d practice2
    --an unresolv$ pro#m or te*nological
      *all5ge exi/s2
    --"! is a sy/em unc]ta9ty 7see
      def9i;n 9 ,"p #d.h (! circul>72 &
    --s"eal it],ns ( exp]i;t &/or
      analysis h be5 id5tifi$ & docu;t$4
  .,te*nical .9dicators
    --"! is di6iculty or failure 9 meet+
      ! objectives1 specific,ns1 &
      b5*m>ks2
    --compon5ts or pieces h be5 modell$
      79clud+ -put]-g5]at$ or develop$
      models72
    --"! is a *ange 9 mat]ials 6meet
      specific,ns &/or co/ t>gets2
    --co/ 3/ra9ts t _c 2 met 0us+ curr5t
      te*nology2
                                     #bg
         #c ,project eligibil;y      c#f
    --new te*nical p]sonnel or \tside
      3sultants ) exp]tise 7 requir$
      6assi/ )! project2
    --"! 7 multiple designs or design
      models = plann+2 &
    --v>i\s approa*es 7 us$ 6meet co/
      t>gets4

       #c.e ,sci5tific & te*nical
                  3t5t
    
  ,! def9i;n ( sci5tific & te*nical 3t5t
is 9 ,"p #b.aj.c (! circul> z foll[s3

  8,! sci5tific rese>* & exp]i;tal
  develop;t activ;y m/ 9corporate a
  sy/ematic 9ve/ig,n f hypo!sis =mul,n1
  "? te/+ 0exp]i;t,n or analysis1 6!
  /ate;t (a logical 3clu.ns4 ,s*
  exp]i;t,n c 9clude "w on ! evolu;n (
  prototypes or models40


                                     #bh
         #c ,project eligibil;y      d#f
  ,demon/r,n ( sci5tific & te*nical 3t5t
c 2 a*iev$ 0foll[+ a project \tl9e s* z3
    --,def9+ te*nological objectives
    --,=mulat+ a project plan
    --,analyz+/exp]i;t+
    --,te/+ & v]ify+ te*nological
      objectives
    --,expla9+ results/summ>y
  ,examples (! docu;ts t cd sub/antiate
sci5tific & te*nical 3t5t >e 4cuss$ 9
,"p #e ( ? pap]4
  ,z well1 ! "w m/ 2 p]=m$ or direct$
0qualifi$ p]sonnel :o h relevant exp]i;e
9 sci;e1 te*nology1 or 5g9e]+4
,qualific,n is n limit$ 6=mal tra9+ b
9cludes skills & k ga9$ "? exp]i;e4
  ,3di;ns & te*nical 9dicators t wd
provide evid;e ( sci5tific & te*nical
3t5t 9clude3
  .,3di;ns
    --foll[+ a plann$ me?odology2
    --docu;t+ te*nological objectives1
      project /eps1 & te*nical results2
      &                              #bi
         #c ,project eligibil;y      e#f
    --us+ qualifi$ key p]sonnel exp]i;ed
      &/or tra9$ 9 exp]i;tal develop;t
      &/or rese>* 6"utake or direct !
      project4
  .,te*nical .9dicators
    --previ\s exp]i;e & su3ess;l claims
      9 ! >ea ( ,,sr&,,ed2
--------------------------------------#g
    --"s ele;ts ( "w 3tract$ \ 6qualifi$
      rese>* bodies &/or sub-3tractors2
    --! id5tific,n ( specific
      objectives2 &
    --a docu;t$ project plan id5tify+
      de"pures f ! te*nical k base (!
      applicant4

        #d ,project eligibil;y--
            ,special issues
    
  ,6qualify z eligi# ,,sr&,,ed1 a
project m/ meet ! crit]ia (! prec$+
sec;n2 t is1 sci5tific or te*nological
adv.e;t1 sci5tific or te*nological
unc]ta9ty1 & sci5tific & te*nical    #cj
         #d ,project eligibil;y      a#g
3t5t4 ,9 ? 9du/ry1 "! >e c]ta9 g5]al
8types0 ( projects t w 2 describ$ 9 m
detail4 ,typical "*i/ics t relate 6^!
projects w al 2 id5tifi$4 ,al? ^! types
( projects d n cov] all types ( projects
3duct$ )9 ! 9du/ry1 !y d provide a g5]al
guidel9e (! m -mon types exp]i;ed4 ,_m
o!r types ( projects >e1 & w be1 3duct$4
,project eligibil;y / ne$s 6be exam9$ on
a case-by-case basis4

        #d.a ,-plete new ma*9]y
               develop;t
    
  ,a memb] ( ? 9du/ry w respond 6a new
m>ket opportun;y 0develop+ a -pletely
new ma*9e or piece ( equip;t4 ,?
project1 : may 2 eligi#1 cd 9volve
significant scal+ up or scal+ d[n ":
te*nological unc]ta9ty is pres5t4 ,(t5 !
te*nological *all5ges t 3front new ma*9e
develop;t 9clude me*anical 3sid],ns t c

                                     #ca
         #d ,project eligibil;y      b#g
only 2 resolv$ "? 8br1k"? 5g9e]+10 s* z
is appli$ 6! m9iaturiz,n ( -pon5ts4
  .,typical ."*i/ics
    --relatively significant design "t
      due 6-plex;y2
    --new -pon5ts2
    --! approa* us$ 6resolve
      te*nological *all5ge is di6]5t ?an
      t previ\sly us$2
    --pat5ts may result f ! develop;t2 &
    --scal+ up or d[n requires !
      significant re-5g9e]+ or redesign
      ( associat$ -pon5ts4

      #d.b ,te*nological 5h.e;t (
             curr5t ma*9]y
    
  ,"w on te*nological 5h.e;t ( curr5t
ma*9]y may 2 eligi# ,,sr&,,ed4 ,typical
projects cd 2 id5tifi$ z meet+ or
requir+3
    --hi<] p]=m.e /&>ds2 &
    --improve;ts 9 e6ici5cy & qual;y (
      exi/+ processes4               #cb
         #d ,project eligibil;y      c#g
  ,9 ? type ( project1 an exi/+ product
or process w require an 5h.e;t 9
capabil;y 6meet new or em]g+ require;ts4
,frequ5tly1 develop+ te*nological
capabil;y )9 ! 9du/ry results 9 id5tify+
new applic,ns =! new te*nology4 ,?
situ,n >ises mo/ frequ5tly :5 new
capabilities >e develop$ = "o type or
family ( products1 & t same capabil;y is
desir$ 9 ano!r family ( products4
,adapt+ ? new te*nology 6exi/+ applic,ns
9 a di6]5t op]at+ 5viron;t may prove 6be
te*nologic,y unc]ta94
  ,9 det]m9+ :e!r ! adapt,n "w is eligi#
exp]i;tal develop;t1 4t9c;n m/ 2 made 2t
"w bas$ on /&>d practice al"o1 & "w t
goes 2y /&>d practice 6resolve
te*nological unc]ta9ties4
  ,if ! project 9volves ! direct adapt,n
(a "kn te*nology 6a new situ,n1 ": x is
r1sonably c]ta9 t ! approa* w "w1 !
project is 9eligi#4 ,on ! o!r h&1 if "!
>e id5tifia# te*nological unc]ta9ties
pres5t1 !n exp]i;tal develop;t w     #cc
         #d ,project eligibil;y      d#g
o3ur4 ,! exp]i;tal develop;t "w t goes
2y /&>d practice 6resolve ! unc]ta9ties
is eligi#4
  ,frequ5tly1 adapt+ a new te*nology 6a
di6]5t op]at+ 5viron;t or =a di6]5t
applic,n 9volves a -b9,n ( /&>d 7exi/+7
te*nologies4 ,! crit]ion = 4t+ui%+ 2t
eligi# exp]i;tal develop;t & 9eligi#
r\t9e develop;t is ! ele;t (
te*nological unc]ta9ty4 ,if ! -b9,n (
/&>d te*nologies result$ 9 a new product
or process1 ! develop;t ( : 0 ! alm
c]ta9 \tcome ( apply+ a progres.n (
well-"kn te*niques1 !n ! "w is 9eligi#
r\t9e develop;t4 ,! "w may repres5t a
-plex 5g9e]+ task1 b is n "*iz$
0te*nological unc]ta9ty4 ,if x c 2 %[n t
9tegrat+ s"eal /&>d te*nologies 6a*ieve
a new product is te*nologic,y unc]ta91
call$ sy/em unc]ta9ty1 !n ! "w is
eligi#4 ,sy/em unc]ta9ty is a4ress$ 9
,sec;n #d.i4

                                     #cd
         #d ,project eligibil;y      e#g
  .,typical "*i/ics
    --pat5ts may result f ! develop;t2
    --"! >e m or new mat]ials or
      me*anical te/+ ?an wd 2 requir$ 9
      ! usual qual;y-3trol proc$ures2
    --! te/+ & failure ( exi/+ products
      6meet new p]=m.e /&>ds2 &
    --te/+ "u m /r+5t op]at+ 5viron;ts4

     #d.c ,/&-al"o s(tw>e develop;t
    
  ,due 6! nature ( ma*9+ & autom,n
"utak5 9 ? 9du/ry1 major s(tw>e
develop;ts >e 2+ made4 ,_m (! 9du/ry
memb]s >e actively develop+ autom,n &
s(tw>e capabilities1 especi,y 9 ! >ea (
ma*9e & tool 3trol sy/ems1 design
processes1 & process 3trol sy/ems4 ,!
evalu,n ( projects 9 ? >ea m/ 2 3duct$
09dividuals :o h exp]i;e &/or k1 & :o
appreciate ! 9tricacies (! >ea ( s(tw>e
--------------------------------------#h
9 ? 9du/ry4 ,x is al important
6emphasize t r\t9e s(tw>e            #ce
         #d ,project eligibil;y      a#h
develop;t1 : is n eligi# on xs [n1 wd 2
eligi# if x directly supports an eligi#
project4
  ,9 "s cases1 ? develop;t is 9itiat$ )
-m]ci,y availa# s(tw>e products4
,claimants may />t )a base package
7e4g41 -put]-aid$ design s(tw>e7 :
requires significant upgrad+ 65h.e &/or
a*ieve specific capabil;y (! sy/em4
  .,typical .examples
  ,! foll[+ examples >e typical (! type
( s(tw>e develop;t "utak5 9 ? 9du/ry4
,^! examples al"o d n e/abli% project
eligibil;y4
    --adapt+ -m]cial s(tw>e 6meet new or
      5h.ed require;ts = process 3trol2
    --adapt+ 3trol sy/ems = ma*9]y 3trol
      &/or process 3trol 7e4g41
      programma# logic 3troll]s72 &
    --automat+ exi/+ processes t >e
      curr5tly manu,y 3troll$4


                                     #cf
        #d.d ,te*nical f1sibil;y     b#h
                 /udies
    
  ,te*nical f1sibil;y /udies & te*nical
/udies >e n1 9 &( !mvs1 eligi# projects4
,if a te*nical /udy l1ds 6an eligi#
project1 !n ! te*nical analysis ( x wd1
0virtue ( s* a l9kage1 2 a qualifi$
activ;y )9 ! project4 ,ev5 )\t ? l9kage1
eligibil;y c o3ur if ! analysis adv.es !
k (! claimant's te*nology base1 provid$
x meets ! ess5tial crit]ia 4cuss$ 9 ,"p
#c ( ? pap]4

        #d.e ,process improve;ts
    
  ,typical projects )9 ? 9du/ry 9clude3
    --! 3/ruc;n ( equip;t 6meet unique
      capabil;y or p]=m.e crit]ia2
    --significant 5h.e;ts 6curr5t
      produc;n processes 6ga9 9cr1ses 9
      productiv;y &/or meet specific
      produc;n co/ t>gets2
    --! design ( tool+ & te/+ ( new
      tool+ me?ods & te*niques2 &    #cg
         #d ,project eligibil;y      c#h
    --9cr1s$ autom,n 7i4e41 robotics74
  ,9 ? 9du/ry1 exp]i;tal develop;t
activities 9 ! process improve;t field
>e typic,y direct$ at ways ( a*iev+
3t9u\s improve;t1 & v]ify+ ! results
0p]=m+ exp]i;tal produc;n runs4 ,!
activities t may 2 eligi# >e (t5 c>ri$ \
)! 9eligi# activities4 ,! foll[+ sec;ns
expla9 ! activities t fall )9 ! b.d>y (
,,sr&,,ed4

        #d.e.a ,3t9u\s improve;t
    
  ,= _m memb]s1 due 6! nature (! 9du/ry1
a major "p ( _! develop;t "w is 6develop
ma*9]y capabilities t >e n r1dily
availa# -m]ci,y = _! [n purposes1 or t
make improve;ts 6_! process4
  ,typic,y1 3/ruct+ ma*9]y & equip;t =
9t]nal use does n foll[ a 3v5;nal
develop;t pa?4 ,(t5 ? equip;t is 9 a
3t9u\s /age ( develop;t 65h.e ! te*nical
capabil;y (! equip;t z new dem&s &
require;ts >e id5tifi$ 0!            #ch
         #d ,project eligibil;y      d#h
applicant4 ,=! purpose ( s* ,,sr&,,ed
claims1 submis.ns %d 2 bas$ on a sep>ate
project basis = ea* su3essive improve;t4
,docu;t,n m/ cle>ly %[ h[ ea* su3essive
improve;t repres5ts an 9cre;tal adv.e
ov] ! previ\s improve;t &1 specific,y1 !
te*nological unc]ta9ty t 0 resolv$4
  ,! result+ ma*9]y & equip;t >e (t5 us$
prim>ily = produc;n purposes1 b specific
situ,ns >ise :5 produc;n equip;t is us$
directly 9 ! prosecu;n ( ,,sr&,,ed4
  ,! use ( ? 9t]n,y develop$ ma*9]y &
equip;t 9 -m]cial produc;n does n negate
! exi/;e ( eligi# activities4 ,9 ^!
situ,ns1 docu;t,n m/ cle>ly 4t+ui% 2t
activities t >e r\t9e 9 nature & 9volv$
only ! /&>d practice (! claimant1 : >e
9eligi#1 f ^? activities t resolve
te*nological unc]ta9ties & result 9
te*nological adv.e1 : >e eligi#4



                                     #ci
        #d.e.b ,te/+ 6demon/rate     e#h
          te*nological adv.e;t
    
  ,= c]ta9 exp]i;tal develop;t projects1
s* z process & equip;t improve;ts1 !
only way 6v]ify t ! te*nological
objectives c 2 a*iev$ is 6c>ry \ trial
produc;n runs4 ,? phase (! develop;t is
! p]iod ( te/+ t corresponds )! prov+ \
( specific,ns =! product or process4 ,x
does n co9cide )! usual le>n+ curve =!
/>t-up ( e/abli%$ sy/ems4 ,^! te/+
activities >e eligi# 6! ext5t t !y
correspond )! ne$s1 & >e directly 9
support1 ( an eligi# exp]i;tal develop;t
project4 ,! product or \tput f s*
activities 7"s"ts "kn z exp]i;tal
produc;n7 may n qualify = ,,sr&,,ed tax
tr1t;t1 dep5d+ on :at uses >e made (!
\tput4
  ,! tax tr1t;t (! exp5ses 9volv$ )
\tput f ^! te/+ activities w 2 di6]5t if
-m]cial activities >e 9volv$ 7e4g41 "s
or all (! \tput is sold74 ,9 ^! situ,ns1
only ! co/s ( mat]ials us$ 9 c>ry+   #dj
         #d ,project eligibil;y      f#h
\ ,,sr&,,ed1 z well z relat$ curr5t
exp5ditures1 may 2 claim$4
--------------------------------------#i
  ,! trial produc;n phase w g5],y 2
3sid]$ -plete once ! result+ product or
process meets ! 9t5d$ te*nological
objectives4 ,h["e1 "s"ts hi< scrap rates
>e 5c.t]$ 9 e>ly produc;n runs1 & ? may
2 us$ 0a claimant z an 9dicator t !
develop;t is / 9 an exp]i;tal /age4 ,!
claimant's activities at ? po9t may or
may n 2 eligi#4 ,x is ! r1son =! scrap
rate pro#m &! process 7exp]i;tal7 foll[$
6resolve x t w 9dicate :e!r or n !
activities >e eligi#4 ,6make a judge;t 9
? 9du/ry1 any assess;t wd h 6be made on
a case-by-case basis 0qualifi$ te*nical
& a3.t+ p]sonnel4
  ,h["e1 if new te*nological pro#ms >e
5c.t]$ subsequ5t 6? "t1 ! attempts
6resolve ^! pro#ms may 2 eligi#
,,sr&,,ed4 ,^! activities %d 2 claim$ z
a sep>ate project1 &! project's
                                     #da
         #d ,project eligibil;y      a#i
eligibil;y dep5ds on :e!r x meets ! ?ree
crit]ia4

        #d.f ,ma*9e us] 9t]face
    
  ,projects >e (t5 9itiat$ 6specific,y
a4ress ! man-ma*9e us] 9t]face4 ,"w 9 ?
>ea c (t5 9volve 3trol sy/ems & o!r >1s
t 9volve develop+ specific-use s(tw>e
programs4 ,s(tw>e develop;t is a4ress$ 9
,"p #d.c ( ? pap]4
  ,man-ma*9e us] 9t]face c al require !
develop;t ( me*anical devices1
electronic h>dw>e1 & c]ta9 s5sor
applic,ns 6facilitate ! 9t]face4 ,ag1 !
abil;y (! projects 6meet ! ?ree ess5tial
crit]ia 4cuss$ 9 ,"p #c ( ? pap] w
det]m9e a project's eligibil;y4
  ,typical projects )9 ? 9du/ry cd
9clude3
    --provid+ audio & visual "*i/ics
      6ma*9e 3trol2 &
    
                                     #db
         #d ,project eligibil;y      b#i
    --mak+ relatively significant design
      ef=ts t[>ds ! ]gonomics (a ma*9e
      applic,n4

          #d.g ,2ta site te/+
    
  ,frequ5tly1 ! ma*9]y & equip;t produc$
0memb]s ( ? 9du/ry >e de/9$ 6be 9/all$ 9
! cu/om]'s produc;n or process
facilities4 ,! develop;t "w is n -plete
until ! ma*9]y or equip;t a*ieves xs
te*nological objectives4 ,? is
demon/rat$ "? te/+ 9 ! r1l produc;n
5viron;t1 al "kn z 2ta site te/+4 ,mo/
(t51 ! claimant _c simulate a typical
produc;n 5viron;t4 ,2ta site te/+ is
"!=e ess5tial4
  ,2ta site te/+ may take place af legal
[n]%ip (! ma*9]y or equip;t has be5
transf]r$ 6! cu/om]4 ,! *ange ( [n]%ip
issue1 &! loc,n ( 2ta te/+ %d n a6ect
:e!r ! activities qualify z ,,sr&,,ed4
,h["e1 9 s* a situ,n1 ! "r 6claim may 2
                                     #dc
         #d ,project eligibil;y      c#i
"qa#4 ,! det]m9,n has 6be made on a
case-by-case basis4
  ,al? ! loc,n ( 2ta te/+ %d n a6ect
:e!r ! activities qualify z ,,sr&,,ed1 !
tax tr1t;t ( _! co/s may 2 di6]5t if !
activities take place \tside ,canada4
,pl1se see ,9t]pret,n ,bullet9 ,,it-#aea
= 9=m,n on h[ s* co/s >e tr1t$4
  ,g5],y1 x is dur+ ! 2ta site te/+ t
c]ta9 te*nological unc]ta9ties >e
resolv$4 ,9 "s cases1 new te*nological
unc]ta9ties >ise dur+ 2ta site te/+ & >e
!n resolv$4 ,activities 6demon/rate !
a*ieve;t ( te*nological objectives1 b n
9clud+ demon/r,ns 6prospective buy]s1 &
^? aim$ at resolv+ te*nological
unc]ta9ties dur+ 2ta site te/+1 >e
3sid]$ qualify+ activities4 ,? phase w
(t5 denote ! -ple;n (! project4 ,"!=e1
claimants m/ demon/rate 9 _! docu;t,n h[
! 2ta site te/+ activities relate
6resolv+ te*nological unc]ta9ties &
a*iev+ ! te*nological objectives4
                                     #dd
         #d ,project eligibil;y      d#i
  ,9 "s 9/.es1 :5 docu;t,n is lack+1 x
may 2 "qa# :e!r activities c>ri$ \ at a
cu/om]'s site >e 2ta site te/+ or r\t9e
tr\#-%oot+1 debu7+ or f9e-tun+ (! ma*9]y
af xs 9/all,n4 ,? is 4cuss$ 9 ! foll[+
sec;n4

      #d.h ,tr\#-%oot+1 debu7+1 &
                f9e-tun+
    
  ,di6iculty (t5 >ises 9 det]m9+ :5 an
exp]i;tal develop;t project is -plete4
,! basic crit]ion = asc]ta9+ :5
exp]i;tal develop;t has be5 -plet$ is !
po9t at : ! project's 9itial
te*nological objectives h be5 a*iev$4 ,?
o3urs :5 all id5tifi$ te*nological
unc]ta9ties h be5 resolv$1 &! applic,n (
/&>d op]at+ practices p]mits ! a*ieve;t
(! te*nological p]=m.e objectives : 7
e/abli%$ :5 ! project 0 def9$4
  ,! "w g5],y associat$ ) tr\#-%oot+1
debu7+1 & f9e-tun+ af ! />t-up ( any new
equip;t1 process1 or te*nology       #de
         #d ,project eligibil;y      e#i
ref]s 6^? activities ": ! \tcome is
r1sonably predicta#1 & is (t5 c>ri$ \ :5
! equip;t1 process1 or te*nology is
9/all$ 65sure t x meets all ! e/abli%$
te*nological specific,ns agre$ ^u4 ,s*
"w is 9eligi#4
  ,h["e1 if x c 2 %[n t 9 ! process (
tr\#-%oot+ & debu7+ a new te*nological
unc]ta9ty o3urs1 !n ! "w : is direct$ at
resolv+ ? specific unc]ta9ty1 b n 9clud+
! tr\#-%oot+ & debu7+ activities1 is
eligi#4 ,? "w %d 2 claim$ z a new
project id5tify+ ! new te*nological
unc]ta9ty 9volv$4

         #d.i ,sy/em unc]ta9ty
    
  ,sy/em unc]ta9ty is a4ress$ 9 ,"p #d.h
(! circul>1 z foll[s3
-------------------------------------#aj
  8,"w on ! -b9,n ( /&>d te*nologies1
  devices1 &/or processes is eligi# if
  non-trivial -b9,ns ( e/abli%$ 7well-
  "kn7 te*nologies & pr9ciples =     #df
         #d ,project eligibil;y     a#aj
  _! 9tegr,n c>ry a major ele;t (
  te*nological unc]ta9ty2 ? may 2 call$
  a 8sy/em unc]ta9ty0 '''04

  ,? 3cept recognizes t ev5 ?\< 2havi\rs
( 9dividual -pon5ts may 2 well "u/ood or
docu;t$1 ! -b9,n ( -pon5ts may fail
6p]=m z expect$4 ,? type ( unc]ta9ty is
frequ5tly 5c.t]$ 9 ! 3text ( ? 9du/ry1
": "kn -pon5ts >e select$1 b ! -b9,n (
^! -pon5ts may produce unexpect$ or
undesira# results 7s* z vibr,n1 ov]load+
( -pon5ts1 3trols 9/abil;y1 etc474 ,(t5
^! sy/em unc]ta9ties c 2 ! cause (a
develop;t project 6det]m9e ! r1sons =
undesira# 2havi\r1 & elim9ate x4
  ,id5tify+ & assess+ sy/em unc]ta9ty c
2 a v -plex ex]cise4 ,a hi< degree (
te*nical exp]i;e & tra9+ is requir$4
,ess5ti,y1 ! ex]cise 2comes "o (
id5tify+ ! major -pon5ts )9 ! sy/em !n
assess+ ! 9t]dep5d;e & 9t]ac;n (! v>i\s
-pon5ts4
                                     #dg
         #d ,project eligibil;y     b#aj
  ,if x is nec 6redesign closely relat$
-pon5ts 6meet ! specific,ns =! sy/em1 z
well z make significant modific,ns
6provide 9t]face ( v>i\s -pon5ts1 &
ef=ts 9 ! 9tegr,n ( -pon5ts g 2y t : cd
2 usu,y det]m9$ z r\t9e 5g9e]+1 !n a
sy/em unc]ta9ty wd exi/4 ,! degree (
sy/em unc]ta9ty c range f m9or 7only "o
-pon5t or aspect (! sy/em requires
redesign7 6major 7_m -pon5ts (! sy/em
require redesign7 dep5d+ on ! sy/em
specific,ns4 ,9 a sy/em 3figur,n1 !
-pon5ts or subsy/ems t require redesign
6resolve ! sy/em unc]ta9ty >e "kn z
associat$ e/abli%$ -pon5ts4 ,only ^?
activities relat$ 6redesign+ ! associat$
e/abli%$ -pon5ts >e eligi#4 ,z a result1
only por;ns ( an ov]all project may 2
eligi# ,,sr&,,ed4 ,! gr\p ( eligi#
activities1 9clud+ all directly support+
activities1 2comes "p (! 85velope (
,,sr&,,ed40 ,! 85velope ( ,,sr&,,ed0 is
def9$ 9 ! 8,gloss>y0 6? pap]4
                                     #dh
         #d ,project eligibil;y     c#aj
  ,docu;t+ ! -b9,n ( /&>d te*nologies1
devices1 &/or processes1 & assess+ !
degree ( trivial;y associat$ )! -b9,n &
9tegr,n 2comes p>am.t4 ,id5tify+ !
85velope ( ,,sr&,,ed0 c pose significant
pro#ms due 6sy/em -plex;y4 ,! docu;ts m/
cle>ly %[ :at activities >e relat$ 6!
redesign (! associat$ e/abli%$ -pon5ts4
,only ! curr5t co/s (! 85velope (
,,sr&,,ed0 may qualify4
  ,z /at$ previ\sly1 9 a -plex sy/em1
id5tify+ ! 85velope ( ,,sr&,,ed0 may n 2
a simple task4 ,? task %d 2 h&l$
09dividuals :o possess ! appropriate
te*nological k & tra9+4 ,"!=e1 x is !
responsibil;y (! sci;e advisor or
te*nical exp]t1 :5 review+ ! eligibil;y
(! project1 6det]m9e ! 85velope (
,,sr&,,ed40
  ,! claimant's a3.t+ sy/em m/ 2 detail$
5 9 ^! situ,ns 6segregate co/s associat$
) e major te*nical -pon5t1 z well z
id5tify+ co/s & exp5ditures associat$ )!
9tegr,n & redesign activities4       #di
         #d ,project eligibil;y     d#aj
  .,typical ."*i/ics
  ,! foll[+ "*i/ics w 2 pres5t 9 an
eligi# project1 b !y d n 9 !mvs e/abli%
project eligibil;y3
    --design+ new applic,ns = exi/+
      equip;t t require ! redesign (
      -pon5ts 6a*ieve te*nological
      specific,ns2
    --sub/itut+ -pon5ts ) new "ps or
      -pon5ts 6improve p]=m.e or 9cr1se
      capabil;y2
    --4cov]+ "s unc]ta9ty 3c]n+ !
      9t]face & 9tegr,n ( -pon5ts2 &
    --requir+ -plex analysis 6select
      -pon5ts4

        #d.aj ,prototypes1 cu/om
     products/processes1 & -m]cial
                 assets
    
  ,x is -mon 9 ? 9du/ry = memb]s 63/ruct
equip;t or ma*9]y 6meet m>ket-dictat$
te*nical require;ts4 ,! equip;t or
ma*9]y ultimately 5ds up 2+ sold     #ej
         #d ,project eligibil;y     e#aj
or put 96-m]cial use4 ,frequ5tly1 s*
equip;t & ma*9]y >e labell$ z
prototypes4 ,=! purposes ( sec;n #cg (!
,act1 & #bijj (! ,regul,ns1 x is
important 64t+ui% 2t prototypes1 &
equip;t or ma*9]y develop$ = sale or put
96-m]cial op],n4 ,6apply ! provi.ns (!
,act & ,regul,ns1 x is nec 6det]m9e !
9t5t = : a "picul> asset is 3/ruct$4 ,!
def9i;n ( sci5tific rese>* & exp]i;tal
develop;t 7,,sr&,,ed7 9 subsec;n
#bijj7#a7 (! ,regul,ns1 &! def9i;n (
,,sr&,,ed exp5ditures 9 sec;n #cg (!
,act1 ess5ti,y gov]n ! tax tr1t;t 9 ^!
situ,ns4 ,! foll[+ p>agraphs di6]5tiate
2t ! tax tr1t;t =a prototype1 &=a cu/om
product/process & -m]cial asset4

          #d.aj.a ,prototypes
    
  ,! ,act does n def9e prototypes or
specific,y provide = _! tr1t;t4 ,h["e1
prototype is def9$ 9 ! gloss>y ( t]ms
7,app5dix ;,a7 (! circul>4           #ea
         #d ,project eligibil;y     f#aj
  ,a prototype is an orig9al model on :
"s?+ new is patt]n$1 &( : all ?+s (!
same type
-------------------------------------#aa
>e repres5t,ns or copies4 ,x is an
exp]i;tal model possess+ ! ess5tial
"*i/ics (! 9t5d$ product 6te/ !
f1sibil;y (! 3cept or hypo!sis4 ,x is n
2+ 3/ruct$ = -m]cial use or sale1 & x
has no la/+ value4 ,! design1 3/ruc;n1 &
te/+ ( prototypes g5],y fall )9 ! scope
( exp]i;tal develop;t &1 :5 ? is ! case1
! co/s wd usu,y 2 an eligi# curr5t
,,sr&,,ed exp5diture4

             #d.aj.b ,cu/om
      products/processes & -m]cial
        assets--cu/om develop;t
    
  ,z /at$ 9 ,"p #d.aj1 x is q -mon 9 ?
9du/ry = memb]s 63/ruct equip;t or
ma*9]y 6meet a cu/om]'s te*nical
require;ts )! 9t5;n ( an ultimate sale4
,s* an "utak+ is ref]r$ 6z a cu/om   #eb
         #d ,project eligibil;y     a#aa
product/process4 ,ano!r -mon practice =
claimants is 63/ruct equip;t & ma*9]y
6meet _! [n te*nical require;ts & : >e
9t5d$ = _! [n -m]cial op],ns4 ,s*
equip;t & ma*9]y >e ref]r$ 6z -m]cial
assets4 ,g5],y1 develop+ cu/om
products/processes & -m]cial assets may
9volve bo? eligi# ,,sr&,,ed & 9eligi#
activities4 ,subsec;n #bijj7#a7 (!
,regul,ns excludes any activities 3sid]$
6be ! -m]cial produc;n or -m]cial use (a
product or process4 ,"!=e1 only a por;n
(! develop;t (a cu/om product/process or
-m]cial asset 7cu/om develop;t7 may 2
eligi# ,,sr&,,ed s9ce n all ! activities
fall )9 ! 85velope ( ,,sr&,,ed40 ,)9 ?
cu/om develop;t is ! claimant's
,,sr&,,ed project : 3si/s ( ^?
activities t fall )9 ! 85velope (
,,sr&,,ed40 ,=! purpose ( sec;n #cg (!
,act1 & #bijj (! ,regul,ns1 ! issue is
h[ m* (! cu/om develop;t is ! eligi#
,,sr&,,ed project8 ,x is ! claimant's
responsibil;y 6sep>ate ! eligi#      #ec
         #d ,project eligibil;y     b#aa
,,sr&,,ed project f ! cu/om develop;t &
claim only ! eligi# ,,sr&,,ed project4
,9 a4i;n1 ! claimant %d isolate ! co/s
associat$ )! eligi# ,,sr&,,ed project f
! total co/ (! cu/om develop;t4 ,x is
important 6note t "s co/s1 "picul>ly
mat]ial co/s1 ( cu/om develop;t relate
"ply 6,,sr&,,ed activities & "ply 6non-
,,sr&,,ed activities4 ,! co/s t relate
6,,sr&,,ed activities w g5],y only 2
3sid]$ 6be eligi# 6! ext5t t !y c 2
directly attributa# 6c>ry+ \ ,,sr&,,ed
7see ,regul,n #bijj7#b7-7#d774 ,al1 !
docu;t,n m/ cle>ly %[ h[ ! ,,sr&,,ed
activities >e relat$ 6resolv+
te*nological unc]ta9ties4

              #e ,docu;t,n
    
  ,! ne$ = adequate docu;t,n is dictat$
9 ,"p #c (! circul>--8,require;t =
sci5tific & te*nical 3t5t & docu;t,n40
,x is ess5tial 6emphasize t ! docu;t,n
6support an eligi# claim %d 2 (a     #ed
              #e ,docu;t,n          c#aa
te*nical nature4 ,a busi;s plan1 set \
6promote ! 9iti,n & approval (a "picul>
project1 does n meet ! docu;t,n
require;ts4 ,! lack ( adequate te*nical
docu;t,n w l1d 6! 4all[.e (! claim4
  ,! foll[+ 4cus.n is m]ely a guide on
h[ tradi;nal docu;t,n cd 2 us$
6sub/antiate a claim1 & is n 9t5d$
6dictate 6,,sr&,,ed p]=m]s :at docu;t,n
!y %d keep4
  ,docu;t,n 6support ! te*nical
unc]ta9ty 9corporat$ 9 ! project %d
a4ress ei ! unc]ta9ty ( a*iev+ !
te*nological goals at all1 or id5tify+ !
possi# alt]native approa*es t h be5
3sid]$ z a pot5tial solu;n4 ,x %d al
9clude an analysis ( _! f1sibil;y 7bas$
on te*nical & co/ t>get 3sid],ns7 %[+ :y
a "picul> pa? 0 select$4 ,x wd al 2 nec
6id5tify ! result+ te*nological adv.e;t
t ! claimant wd make )9 ! busi;s 3text
(! firm4
  ,! project plan1 & docu;t,n (! plan1
%d 9iti,y describe ! 9ve/igative     #ee
              #e ,docu;t,n          d#aa
me?ods 6be us$1 ! p]sonnel & s]vices 6be
allocat$ 6! project1 &! 9dic,ns or
m1sure;ts 6be us$ 9 det]m9+ ! su3ess or
failure (! v>i\s exp]i;ts &/or analysis4
  ,z ! plan is 2+ c>ri$ \1 ! progress m/
2 docu;t$ on a p]iodic basis1 9clud+ !
v>i\s su3esses &/or failures exp]i;ed
al;g ! way4 ,^! 9clude te/ results1 te/
reports1 notes on exp]i;t,n1 etc4
,evid;e ( *anges 9 me?odology or !
selec;n ( alt]native /rategies1 r\tes1
etc41 m/ 2 id5tifi$ & docu;t$ 6record a
-plete track+ (! plan "? 6xs 3clu.n4
  ,once ! plan has be5 -plet$1 or p]h
abort$ due 6a failure1 ! 3clu.ns m/ !n 2
docu;t$4 ,! 3clu.ns %d use ! results (!
exp]i;t,n or analysis 6m1sure ! degree (
su3ess 9 a*iev+ ! te*nological
objectives4
  ,co/s 9curr$ on ! project %d 2
id5tifi$ & appropriately allocat$ :5
nec4 ,if "! >e pay;ts 6o!r "pies1 a3ess
6any 3tracts is ess5tial1 z >e !
te*nological /udies or plans on :    #ef
              #e ,docu;t,n          e#aa
! "w 0 bas$ &! ma9t5.e ( all records 9 !
transac;n4 ,:5 "! is a prolif],n (
activities 9 ! 85velope ( ,,sr&,,ed10 x
2comes nec 6be a# 6quantify ! co/s
allocat$ 6ea* activ;y4

     #e.a ,te*nical 9=m,n require;t
          = claims3 ,=m ,t#ffa
    
  ,=m ,t#ffa1 ,claim = ,sci5tific
,rese>* & ,exp]i;tal ,develop;t
,exp5ditures ,c>ri$ on 9 ,canada1 is a
prescrib$ =m t we require = fil+
,,sr&,,ed claims4 ,guide ,t#djhh1
,claim+ ,sci5tific ,rese>* & ,exp]i;tal
,develop;t ,exp5ditures--,guide 6,=m
,t#ffa1 is availa# 6help claimants
-------------------------------------#ab
-plete ,=m ,t#ffa4 ,x is ! claimant's
responsibil;y 6ma9ta9 records t >e
adequate & c support a claim4 ,a g5]al
\tl9e (a typical n>rative t wd g5],y 2
su6ici5t is provid$ z foll[s3
                                     #eg
              #e ,docu;t,n          a#ab
  ,a7 ,g5]al 9=m,n ab yr busi;s
    --"n (! busi;s or -pany2
    --"n1 teleph"o numb]1 & title (!
      p]son or p]sons responsi# =
      sci5tific rese>* & exp]i;tal
      develop;t2
    --a brief descrip;n (! nature ( yr
      busi;s2
    --key ^ws describ+ ! fields (
      te*nology ( yr project or projects
      7e4g41 robotics1 metal & alloys1
      electrical 5g9e]+1 etc472
    --"ns ( o!r busi;ses1 if any1 t yr
      busi;s is associat$ ) "? 9t]-l9k+
      manage;t1 jo9t v5tures1 [n]%ip1
      "pn]%ips1 etc41 : cd h a
      significant be>+ on ! 3duct ( yr
      ,,sr&,,ed2 &
    --! tax,n ye> ( previ\s claims1 if
      any4
  ,b7 ,te*nical n>rative = ea* project
    ,ea* project's te*nical n>rative %d
    9clude ! foll[+3
    --project title3                 #eh
              #e ,docu;t,n          b#ab
      --"n ( project or project numb]2
      ---/>t date & actual or e/imat$
        -ple;n date2
    --brief descrip;n ( project 9
      te*nical t]ms2
    --! te*nological adv.e;t s"\2
    --! te*nological unc]ta9ties
      associat$ )! project3
      --id5tify+ ! possibil;y ( a*iev+
        te*nological goals2
      --id5tify+ ! di6]5t pa?s1
        approa*es1 3figur,ns1 etc41 6be
        te/$1 if any1 6meet desir$
        specific,ns &/or co/ t>gets2
    --brief descrip;n ( te*nical "w d"o3
      --progress made 6date2
      --key f9d+s & 3clu.ns1 if any2
    --id5tify+ activities 7e4g41 5g9e]+1
      design1 -put] programm+1 data
      collec;n1 etc47 directly 9 support
      (! exp]i;tal develop;t project2
    --"ns1 qualific,ns1 & exp]i;e ( key
      p]sonnel 9volv$ 9 ! project2
    --te*nical reports3              #ei
              #e ,docu;t,n          c#ab
      --significant 9t]nal te*nical
        docu;t,n2
      --publi%$ reports or o!r records t
        relate 6! te*nical aspects (!
        project2
    --summ>y ( approximate res\rces
      allocat$ dur+ ! ye>3
      --numb] ( h\rs allocat$ 6project2
      --e/imate ( am.t ( curr5t
        exp5ditures2
      --e/imate ( capital exp5ditures4
      
      #f ,examples ( self-assess;t
                (a claim
    
  ,9 ? sec;n we pres5t a typical cu/om
product develop;t t 3ta9s bo? ,,sr&,,ed
& non-,,sr&,,ed activities z an example
(! self-assess;t (a claim4 ,! 9t5t is
6help claimants id5tify & claim !
,,sr&,,ed "w 7project7 t is pres5t 9 !
cu/om develop;t4 ,? example w al
illu/rate h[ ! crit]ia ( sci5tific or
te*nological adv.e;t1 sci5tific or   #fj
              #f ,examples          d#ab
te*nological unc]ta9ty1 & sci5tific &
te*nical 3t5t >e appli$4

,note
  ,9 ? example all activities >e c>ri$
  on 9 ,canada4

         ,objective (! project
    
  ,6build a ma*9e t uses electric motors
& s]vos r ?an hydraulic p[] 6reduce !
me*anical -plex;y &! size (! ma*9e1 z
well z 65h.e ! "?put (! ma*9e4

            ,-pany backgr.d
    
  ,,abc1 a ,canadian -pany1 is a
manufactur] ( special;y ma*9es us+
hydraulic p[] 6=m /eel4 ,^! ma*9es >e
sold to1 & us$ by1 cu/om]s 9 a produc;n
facil;y4 ,! -pany id5tifi$ an opportun;y
) "o ( xs cu/om]s 6develop a product )
5h.ed capabilities 7e4g41 productiv;y &
\tput 9 pieces p] h\r74 ,! cu/om]    #fa
              #f ,examples          e#ab
agre$ 6pur*ase a ma*9e t met xs
specific,ns at a fix$ price 7reg>d.s (
,,abc's develop;t co/s74
  ,! -pany 0 q c]ta9 t ^! new
specific,ns cd n 2 met us+ ! -pany's
curr5t hydraulic te*nology4 ,h["e1 !
-pany 2liev$ t ! new specific,ns mi<t 2
met if !y replac$ ! hydraulic drive ) an
electric "o4 ,! electric drive te*nology
repres5t$ a new te*nology 6! -pany4 ,x
pot5ti,y cd 2 appli$ 6! -pany's o!r
products4
  ,bas$ on ! foll[+1 ! -pany 2lieves t
"! is eligi# ,,sr&,,ed "w 7project7 )9 !
cu/om develop;t3
  --,sci5tific or te*nological adv.e;t
    ,electric drive te*nology repres5t$
    a new te*nology 6! -pany1 : cd h
    applic,n 6o!r products 9 xs exi/+
    product l9e4 ,! -pany _h n us$1 & 0
    n aw>e ( electric te*nology 2+ us$1
    9 a simil> applic,n4 ,9 ! busi;s
    3text (! -pany1 ! su3ess or failure
    ( s* an "utak+ wd repres5t an    #fb
              #f ,examples          f#ab
    adv.e;t =! -pany4 ,su3ess
-------------------------------------#ac
    wd m1n an adv.e 9 te*nology 7e4g41
    5h.ed capabil;y us+ electric drive7
    :ile failure wd m1n an adv.e 9
    te*nological k 7e4g41 limit,ns (
    electric drive te*nology z a
    replace;t = hydraulic drive
    te*nology 9 ? "picul> applic,n74
  --,sci5tific or te*nological unc]ta9ty
    ,! -pany _h exam9$ ! te*nical
    require;ts1 & 0simple te/+ ( exi/+
    products1 3clud$ t ! specific,ns cd
    n 2 met us+ a hydraulic sy/em4 ,z an
    alt]native1 ! -pany 3duct$ a
    f1sibil;y /udy t id5tifi$ t an
    electric drive & an electronic 3trol
    sy/em mi<t h ! capabil;y ( meet+ !
    p]=m.e require;ts4 ,h["e1 x 0
    unc]ta9 t an electric drive & an
    electronic 3trol sy/em wd meet !
    foll[+ goals3
    --physical space3 ! new drive sy/em
      m/ h dim5.ns ( n m ?an #b      #fc
              #f ,examples          a#ac
      met]s l;g 0#a met]s wide 0#j.e
      met]s hi<2
    --spe$3 m/ a*ieve m ?an #cjj presses
      p] h\r2 ! curr5t hydraulic sy/em 0
      capa# ( #bdj presses p] h\r2
    --p[] 7electric sy/ems mi<t n 2
      capa# ( provid+ su6ici5t p[]/=ce73
      m/ 2 su6ici5t 6=m /eel "ps2 &
    --3trol3 drive sy/em m/ h su6ici5t
      3trol 6a*ieve ! me*anical tol].e
      desir$ 9 ! press+4
  --,sci5tific & te*nical 3t5t
    ,! -pany id5tifi$ a project t1m
    6p]=m ? assign;t4 ,! t1m 0 l$ 0a
    s5ior electrical te*nologi/ :o _h
    s"eal ye>s ( exp]i;e ) electric p[]
    ma*9]y &! develop;t ( hydraulic
    ma*9]y4 ,he 0 responsi# = develop+ a
    project plan1 & monitor+ progress
    "?\t ! project4
  
  

                                     #fd
                 ,plan              b#ac
    
  ,! project l1d] develop$ a project *>t
%[+ key project /eps & mile/"o dates4
,dur+ ! develop;t (! plan1 ! project
l1d] id5tifi$ ! ne$ = \tside exp]tise 9
! >ea ( electric motors & electronic
3trols4 ,an 9dep5d5t qualifi$ electrical
5g9e] 0 3tract$ 6provide ! exp]tise
requir$ =! project4
  ,! plan al id5tifi$ modell+
opportunities =a new 3trol sy/em1 &
/,n>y te/+ ( key -pon5ts4 ,! result (!
te/+ wd 2 6assess ! suitabil;y ( key
-pon5ts 9 ! f9al ma*9e design4

          ,analysis/exp]i;t,n
    
  ,! design] assign$ 6! project develop$
! alt]native equip;t 3figur,ns 6meet !
cu/om]'s require;t4 ,0us+ ! -pany's
-put]-aid$ design 7,,cad7 sy/em1 design
"t 0 m9imiz$1 & d[n load+ 6-put]-aid$
manufactur+ 7,,cam7 &! build+ ( c]ta9
-pon5ts 0 simplifi$4 ,s"eal design   #fe
              #f ,examples          c#ac
it],ns _h 6made 6a*ieve ! physical size
3/ra9t4 ,! design it],ns 7 bas$ on !
results (! mock-up exp]i;ts &!
recomm5d,ns (! electrical 5g9e]4
  ,! electrical 5g9e]+ 3sultant1 9 a
report1 recomm5d$ ?ree possi# motors
bas$ on ! =ce require;t = press+ ! "w
piece1 ! spe$ (! drive sy/em1 &!
physical size 3/ra9t4 ,ea* motor _h a
di6]5t spe$-torque "*i/ic4 ,! f9al
selec;n wd 2 made af exp]i;ts 7 3duct$
us+ a scal$-d[n model (! drive unit1 &!
prototype logic sy/em z ! programma#
logic 3troll] 7,,plc74 ,! 5g9e] al
develop$ ! func;nal specific,ns =!
,,plc4
  ,! project t1m assem#d a prototype
logic sy/em 6model ! ,,plc 2havi\r2 !
ultimate imple;t,n ( ? sy/em wd 2 a
micro *ip4 ,exp]i;ts 7 p]=m$ 6simulate !
f9e 3trol requir$ 6a*ieve ! me*anical
tol].e on ! "w piece4 ,s"eal modific,ns
_h 6be made 6! ,,plc design 2f ! requir$
results 7 a*iev$4                    #ff
              #f ,examples          d#ac
  ,! project t1m al built a scal$-d[n
model (! drive sy/em & c\pl$ x 6!
prototype logic sy/em 69ve/igate :e!r
su6ici5t =ce cd 2 develop$ 6=m /eel "ps2
&! spe$ (! drive sy/em4 ,! results f ^!
prototyp+ te/s wd al dictate : electric
motor wd 2 select$ =! f9al sy/em4 ,_m
te/s 7 p]=m$1 & s"eal modific,ns 6!
,,plc design _h 6be made 2f f9e 3trol (!
drive 0 a*iev$4 ,! results ( ^! te/s
seem$ 69dicate t ! motor t _h a mid-
range spe$-torque "*i/ic %d 2 ! "o
select$ =! f9al sy/em4 ,h["e1 ? cd only
2 3firm$ 0build+ & te/+ ! actual sy/em4

         ,sy/em 3/ruc;n & te/+
    
  ,! results f ! prototype te/s 7 f$
back 6! design] =! design (! actual
sy/em4 ,v>i\s modific,ns _h 6be made 6!
orig9al design 3figur,n 6a*ieve !
dim5.nal specific,n (! sy/em n[ t !
*oice (! motor 0 made4 ,! new electric
drive sy/em us+ ! select$ motor &!   #fg
              #f ,examples          e#ac
new 3trol sy/em 0 3/ruct$1 assem#d &
retrofitt$ 6an exi/+ hydraulic model4 ,?
cu/om model 0 !n 9/all$ at ! cu/om]'s
site & te/$ 6meet ! te*nological
specific,ns4
  ,z a result ( ^? te/s1 ! ne$ =a numb]
( modific,ns 2came obvi\s3
    --,! 3trol sy/em 0 too -plex2 few]
      f1tures wd make ! sy/em simpl] =
      op]ators 6use4
-------------------------------------#ad
      ,! 3trol sy/em 0 modifi$ 6make x
      simpl] 6use4
    --,! 3trol sy/em ne$$ 6be modifi$
      6elim9ate hy/]esis due 6! 9]tia (!
      motor4 ,? pro#m 0 n evid5t 9 !
      prototyp+ te/s us+ a scal$-d[n
      drive model4
    --,! drive sy/em appe>$ 6"w1 b 0
      noisy "u hi<-load 3di;ns4
      ,ext5sive ac\/ic damp+ 0 requir$
      6correct ? pro#m4
    --,! mo;n (! drive sy/em 0 n smoo?
      "u load1 : result$ 9           #fh
              #f ,examples          a#ad
      una3epta# v>i.e 9 ! me*anical
      tol].e specific,n =! press+4 ,x
      took s"eal modific,ns 6! drive
      sy/em 0trial & ]ror 2f ! pro#m 0
      correct$4
    --,s"eal relays _h 6be replac$ ) "os
      ) hi<] rat+s1 & l9e filt]s 7 a4$
      6! 3trol sy/em 6elim9ate l9e
      spikes4
    --,9iti,y1 ! sy/em 0 op]at+
      9t]mitt5tly4 ,fur!r 9ve/ig,n %[$ t
      du/ f ! 5viron;t 0 9t]f]+ )! op],n
      ( "s posi;n s5sors & 9t]lock
      swit*es4 ,! pro#m 0 elim9at$ :5
      du/ cov]s 7 9/all$ ov] ! s5sors &
      swit*es4

           ,results & summ>y
    
  ,z a result (! modific,ns d"o on-site1
! sy/em 0 f9,y a# 6a*ieve all xs
te*nological objectives4 ,typic,y1 a
/&>d ma*9e 7i4e41 hydraulic v].n7 is
9/all$ & -mis.n$ 9 a "o-week         #fi
              #f ,examples          b#ad
p]iod4 ,9/all+ & -mis.n+ ! electric
drive model took six weeks1 dur+ :
requir$ modific,ns 7 made 9 ! field4

        ,id5tific,n (! ,,sr&,,ed
                project
    
  ,! task 9 self-assess+ ? claim is n j
6det]m9e t ! ,,sr&,,ed project meets !
eligibil;y crit]ia 7unc]ta9ty1 adv.e;t1
& 3t5t71 b al 6id5tify ^? activities t
fall )9 ! 85velope ( ,,sr&,,ed0 s9ce !
cu/om develop;t 3ta9s bo? ,,sr&,,ed &
non-,,sr&,,ed activities4 ,! ,,sr&,,ed
project !n 3si/s (! activities t fall )9
! 85velope ( ,,sr&,,ed40 ,bas$ on !
develop;t describ$1 an eligi# ,,sr&,,ed
project exi/s s9ce ! ?ree crit]ia >e
met4 ,! issue is h[ m* (! develop;t is !
,,sr&,,ed project8
  a7 ,! ,,sr&,,ed project
    ,! foll[+ activities 3/itute !
    ,,sr&,,ed project 7i4e41 85velope (
    ,,sr&,,ed073                     #gj
              #f ,examples          c#ad
    --! activities relat+ 6! new drive
      &! new 3trol sy/em1 "t1 & mat]ials
      3sum$ 7resolv+ te*nological
      unc]ta9ties72
    --project manage;t (! ,,sr&,,ed
      project1 "t only 7support
      activ;y72
    --plann+1 "t only 7support activ;y72
    --design ( alt]native equip;t
      3figur,ns & it],ns 6meet physical
      3/ra9t require;t1 "t only 7support
      activ;y & resolv+ te*nological
      unc]ta9ty72
    --\tside 3sultant /udy 7support
      activ;y72
    --prototype logic sy/em 6model !
      ,,plc 2havi\r1 9clud+ exp]i;ts
      6simulate ! f9e 3trol (! drive &
      modific,n 6! ,,plc design1 bo? "t
      & mat]ials 3sum$ 7resolv+
      te*nological unc]ta9ty72
    --3/ruc;n ( scal$-d[n model ( drive
      sy/em & 9ve/ig,ns ( su6ici5cy (
      =ce 6=m /eel "ps & spe$ (      #ga
              #f ,examples          d#ad
      sy/em1 bo? "t & mat]ials 3sum$
      7resolv+ te*nological unc]ta9ty72
    --te/+ at cu/om]'s site 6meet
      te*nological specific,ns 7validat+
      & demon/rat+ te*nological
      adv.e;t71 9clud+ modific,n "w 6!
      3trol sy/em 6elim9ate hy/]esis1 &
      modific,n "w 6! drive sy/em
      6correct unev5 mo;n "u load1 bo?
      "t & mat]ials 3sum$ 7resolv+
      te*nological unc]ta9ties requir$
      6a*ieve te*nological objectives74
  b7 ,activities t >e n 3sid]$ 6be "p (!
    ,,sr&,,ed project
    ,! foll[+ activities d n fall )9 !
    85velope ( ,,sr&,,ed0 & _c 2 claim$3
    --,! activities relat+ 6! 9t]face 2t
      ! new drive &! exi/+ -pon5ts 7did
      n 9volve any te*nological
      unc]ta9ty1 &1 "!=e1 fall \tside !
      85velope ( ,,sr&,,ed407
    --f9al design 7! la/ redesign us+ !
      results (! la/ prototype te/7 (!
      actual sy/em 7a "o-"t r\t9e    #gb
              #f ,examples          e#ad
      5g9e]+ activ;y relat$ 6-m]cial
      activ;y72
    --3/ruc;n & assembly ( new drive1
      bo? "t & mat]ials1 9clud+ new
      electric motor 7relat$ 6-m]cial
      activ;y72
    --3/ruc;n & assembly ( new
      electronic 3trol sy/em1 bo? "t &
      mat]ials 7relat$ 6-m]cial
      activ;y72
    --! ac\/ic damp+ "w dur+ te/+ at
      cu/om]'s site1 bo? "t & mat]ials
      7/&>d practice n relat$ 6resolv+
      te*nological unc]ta9ty72
    --3trol sy/em modific,n 6make x
      simpl] 6use1 bo? "t & mat]ial
      7/&>d practice n relat$ 6resolv+
      te*nological unc]ta9ty2 n requir$
      6a*ieve te*nological objectives1 b
      requir$ 6satisfy cu/om]'s ne$2
    --all "w relat$ 6replac+ relays &
      9/all+ l9e filt]s dur+ te/+ at
      cu/om]'s site1 bo? "t & mat]ials
      7tr\#-%oot+ & debu7+ n         #gc
              #f ,examples          f#ad
      relat$ 6resolv+ te*nological
      unc]ta9ty72
-------------------------------------#ae
    --all "w relat$ 69ve/igat+ 9t]mitt5t
      op],n due 6du/1 & 9/all+ du/ cov]s
      dur+ te/ at cu/om]'s site1 bo? "t
      & mat]ial 7tr\#-%oot+ & debu7+ n
      relat$ 6resolv+ te*nological
      unc]ta9ty74
  ,? example illu/rates a develop;t
9volv+ te*nological 5h.e;t ( curr5t
ma*9]y4 ,! claimant 9 ? case wd claim
only ! ,,sr&,,ed project id5tifi$4
  ,9 g5]al1 ea* cu/om develop;t )9 ?
9du/ry sector has 6be 3sid]$ on a case-
by-case basis reg>d+ ! id5tific,n ( h[
m* (! develop;t 3/itutes ! ,,sr&,,ed
project4
  ,second example
  ,z a second example1 assume ! same
facts z ^? describ$ 9 ! f/ example4
,h["e1 9 ? case1 "! 0 unc]ta9ty ab :e!r
9tegrat+ ! new electrical drive sy/em
96! curr5t ma*9e /ructure cd 2       #gd
              #f ,examples          a#ae
a*iev$ )\t major modific,ns 6! ma*9e
/ructure4 ,9 c>ry+ \ ! 9tegr,n1 x 0
le>n$ t major modific,ns _h 6be made 6!
curr5t ma*9e /ructure 2f ! 9tegr,n wd
meet te*nological specific,ns4 ,^!
modific,ns requir$ bo? new 3/ruc;n
mat]ials & significant *anges 6! basic
design & 9t]face ( /&>d -pon5ts4
  ,9 ? example1 sy/em unc]ta9ty exi/s ab
:e!r 9tegrat+ /&>d -pon5ts 6! new
electric drive c 2 a*iev$ )\t major
modific,ns :ile / meet+ ! requir$
te*nological specific,ns4 ,al? ! op],n (
9dividual -pon5ts may h be5 "kn1 !
result (! 9t]ac;ns am;g !m z a :ole 0
un"kn1 & cd only 2 resolv$ "? a project
t 9corporat$ a sy/ematic 9ve/ig,n
6det]m9e ! result (! 9t]ac;ns4 ,"!=e1 !
,,sr&,,ed project wd 9clude ^?
activities id5tifi$ 9 ! f/ example1 z
well z all ^? activities relat$ 6modify+
all relat$ -pon5ts4
  ,9 ! examples1 65sure a smoo? review (
_! claims1 claimants m/ prop]ly      #ge
              #f ,examples          b#ae
allocate ! exp5ditures 6! ,,sr&,,ed
project4

              #g ,gloss>y
    
                ,activ;y
    
  ,an activ;y is a small 9cre;t ( "w )9
a project4 ,! activ;y is usu,y ! l[e/
level ( a3.tabil;y1 & c ref] 6a te*nical
specialty 7e4g41 logic design7 or
process 7e4g41 9frar$ spectrum
analysis74 ,x cle>ly def9es ! specific
"w p]=m$1 & c 2 atta*$ 6a specific
9dividual or piece ( equip;t4

               ,analysis
    
  ,analysis is a me?od us$ 6det]m9e or
describe ! nature (a ?+ 0sep>at+ x 96xs
-pon5t "ps4


                                     #gf
          ,5velope ( ,,sr&,,ed      c#ae
    
  ,! 85velope ( ,,sr&,,ed0 3ta9s basic
rese>* "w1 appli$ rese>* "w1 exp]i;tal
develop;t "w1 & activities t >e nec
6resolv+ te*nological unc]ta9ties1 z
def9$ 9 subsec;n #bijj7#a7 (! ,regul,ns4

               ,exp]i;t,n
    
  ,exp]i;t,n is an act or op],n design$
64cov]1 te/1 or illu/rate a tru?1
pr9ciple1 or e6ect--6make a te/ or
trial4

                ,9cre;t
    
  ,an 9cre;t is ! level ( small
improve;t or 83t9u\s improve;t0 0: a
ma*9e or piece ( equip;t c 2 improv$ 7z
oppos$ 6radical improve;t74



                                     #gg
           ,process develop;t       d#ae
    
  ,process develop;t is ! design (a new
me?od ( 3v]t+ "o mat]ial 96ano!r1 ei
0trans=m+ x or a4+ mat]ial 6x1 z us$ 9 !
3text ( manufactur+4


















                                     #gh