Research and experimental development (R&D) comprise creative work undertaken on a systematic basis in order to increase ... the stock of knowledge, including knowledge of man, culture and society, and the use of this stock of knowledge to devise new applications (cf. Frascati Manual 2002, section 63). Expenditure incurred in the context of this work is expenditure on research and development. A distinction is made between intramural and extramural R&D expenditures.
"Intramural expenditures" are all expenditures for R&D performed within a statistical unit or sector of the economy during a specific period, whatever the source of funds (cf. Frascati Manual 2002, sections 358 f).
"Extramural expenditures" are the sums a unit, organization or sector reports having paid or committed themselves to pay to another unit, organization or sector for the performance of R&D during a specific period (cf. Frascati Manual 2002, section 408). These are mostly research contracts awarded to other companies, universities or governmental research institutes.