SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES IN

Transcription

1 GLOSSARY ( FOR MoRST 1991/10 SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES IN NEW ZEALAND Ministry of Research, Science and Technology I ',,I Ministry of Science and rnnovation

2 GLOSSARY OF TERMS FOR SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES IN NEW ZEALAND m Ministry of Research, Science and Technology Te Manatu Putaiao

3 Glossary of Terms for Scientific and Technological Activities in New Zealand July 1991 ISBN: Compiled by G.J. Rys Senior Policy Analyst Ministry of Research, Science and Technology Published by the Ministry of Research, Science and Technology PO Box 5336 Wellington New Zealand. Tel (04) Fax: (04) Approved for general release. Basil Walker Chief Executive

4 FOREWORD This publication will, for the first time, give us a glossary to standardise the usage of terms for scientific and technological activities in New Zealand. lt provides an introduction to the concepts, definitions and classifications that have been developed as part of the New Zealand public sector and science reforms, and to meet the needs of the OECD for statistics on sdentific and technological activities. An important contribution to the glossary was provided through consultation with various sdence providers, universities, the Royal Society and the Foundation for Research, Sdence and Technology. We gratefully acknowledge their invaluable assistance. This glossary is a first attempt and is by no means complete or detailed. The terms and definitions are intended to be working definitions that are consistent with international practice. lt is an ongoing effort and future updated versions are planned. For this, reader feedback on this first edition will be greatly welcomed. Basil Walker Chief Executive

5 CONTENTS Page 1 Introduction 1 2 Sdence and Technology Policy Organisations 3 3 Terms Currently used in Sdence and Technology Policy 8 4 Definition of Sdentific and Technological Activities 16 5 Definition of Sectors Performing Research and Development 24 6 Definition of Types of Research and Development Activity 26 7 Definition of Facilities involved with Scientific and Technological Activities 28 8 Definition of Personnel involved with Research and Development 31 9 Classification of Research and Development by Sodo- Economic Objectives Sdence Output Class Titles and Definitions 3S 11 Bibliography and Further Reading 46

6 1. INTRODUCTION Reforms of public sector science and the public sector in general have resulted in the development of new terminology that is unfamiliar to both people involved in science and the community at large. Recent public sector reforms, implemented in legislation by the State Sector Act (1988) and the Public Finance Act (1989), have marked a shift away from a focus on the allocation of cash resource Inputs to a concern with the production of goods and service outputs, and how these contribute to the overall alms of Government. Coupled with general public sector reforms, reforms of public sector science have resulted in new mechanisms of funding allocation and national priority establishment. Associated with this has been a Government commitment to provide comprehensive information on science and technology funding, personnel and activities to the international community via the OECD. This is the first time New Zealand will provide comprehensive data on a systematic and ongoing basis. It will allow regular and continuing comparison of New Zealand's scientific and technological effort with that of other OECD countries. To facilitate the adoption of these reforms, and to assist the transition process, a glossary of standardised terms is required. Early efforts to establish and standardise the definitions of science and technology at an international level were made by the OECD in This resulted in what has now become the standard text entitled" The Measurement of Scientific and Technical Activities: Proposed Standard Practice for Surveys of Research and Experimental Development", commonly known as the "Frascati Manual" which, in recognition of the dynamic and varied nature of research, has been updated at regular intervals. It was therefore considered necessary to develop a glossary to standardise the terms used for scientific and technological activities in New Zealand. It is intended that the following glossary be an introduction to the concepts, definitions and classifications developed as part of the New Zealand public sector and science reforms, and to meet the needs of the OECD for standard definitions in obtaining statistics on scientific and technological activities. Where possible, the glossary has been based on concepts, definitions and classifications used in the international community. This glossary is, however, not comprehensive or detailed, and for further information readers are referred to the bibliography at the conclusion of the document, particularly references one and two. In developing classifications, it must be remembered that they do not exist in their own right, but are arbitrary constructs. As such, a classification can vary according to the purpose of the exercise, the criteria chosen and the frame of reference of the contributors. Inherent 1

7 : universal limitations of all classifications include overlap, the tendency to become fixed and static in nature, incompleteness, and the converting of what is usually a continuous scale into a discrete one. This glossary has been prepared with the aim of addressing the sdence and technology needs of the New Zealand Government, and therefore the contents are expressed in terms that meet these needs. The terms, definitions and classifications in this glossary are also intended to be working definitions that are subject to regular review and modification. Throughout the document, definition source is identified by a number in brackets, cross referenced to the blbllography at the end of the document. To contribute to ongoing sdence and technology pollcy development in New Zealand, future updated editions are planned. Reader comment and suggestions on this edition are therefore welcomed. 2

8 2. SCIENCE AND TECHNOLOGY POLICY ORGANISATIONS Recent reforms of science and technology in New Zealand are based on key issues which provide for: Separation of policy advice, funding allocation and conduct of research and development. Contestabllity for research funding from a single public good science fund. Establishment of national science and technology priorities based on consultation with the New Zealand community. STRUCTURAL REFORMS In order to achieve this a series of structural reforms have been made. The following components have either been established or reconfirmed: A Cabinet portfolio and Ministry of Research, Science and Technology. A Cabinet Committee with responsibility for Research, Science and Technology. A Foundation for Research, Science and Technology. The Royal Society of New Zealand. The following sections deal with each of these in more detail (4). CABINET PORTFOLIO AND MINISTRY OF RESEARCH, SCIENCE AND TECHNOLOGY A new Ministerial portfolio was created with a Ministry of Research, Science and Technology to provide policy advice. The Ministry has no operational responsibilities. Instead, it has a cohesive role to play between the various disciplines, organisations and their representatives, and in the formulation of advice to the Minister on policy and its implementation. Its principal functions are as follows: 1 The Ministry advises the Minister on national science and technology policy and, where appropriate, on the implementation of government science and technology policy, including: Identification of national priorities and levels for output funding to achieve the broad objectives agreed by Cabinet. 3

9 Advice on the total level of government investment in research, science and technology. Advice on the annual level of funding available for allocation by the Foundation. Advice on other government interventions appropriate to achieve outcomes wanted by the Government. Development, in conjunction with the Foundation, of the desired objectives and an output framework for State funding which are consistent with the Government's budgeting and financial management processes. 2 The Ministry provides executive support to the Minister. 3 The Ministry will arrange and publish the results of science reviews, and present recommendations to the Minister and the Foundation. 4 The Ministry is responsible for: Disbursing annual government grants to the Royal Society of New Zealand on a contract basis. Providing the Foundation with its Parliamentary-approved proportion of total government research funds. Providing specialist advice on public science issues. Collecting data on all forms of national research and development activity and its results, including fulfilling international obligations to provide data on national science and technology. Maintaining government-to-government research, science and technology agreements, including national membership of international agencies and the disbursement of grants-in-aid funds for international co-operation. Facilitating and promoting public awareness of science, science education, retraining for new technical skills In the workforce and Industrial innovation In the interests of social and economic growth (4). 4

10 CABINET COMMITTEE ON EDUCATION, SCIENCE AND TECHNOLOGY The National Government, elected in November 1990, established a Cabinet Committee for Education, Science and Technology with the following terms of reference which relate to science and technology: 1 To evaluate science and technology policies and oversee the consolidation of the new science structures. 2 To review advice from the Ministry of Research, Science and Technology (in consultation with the Foundation for Research, Science and Technology) on science policy and research priorities (including health). 3 To fix priorities for science funding and direct the Foundation and Departments with operational science programmes (ie those not funded from the contestable pool administered by the Foundation) to reflect these priorities in their planning. 4 To make recommendations to the Cabinet Strategy Committee on the overall level of Government funding for science (ie operational science budgets plus the contestable funding pool). 5 To work within the fiscal limits and priorities for action established for this Committee by the Cabinet Strategy Committee to reflect the Government's overall priorities. 6 To consider proposals in the sector requiring financial approvals in excess of financial authorities held by Ministers and Chief Executives and to consider policy relating to proposals for new expenditure, and to report on these to Cabinet through the Cabinet Expenditure Control Committee. 7 To report periodically to Cabinet through the Cabinet Strategy Committee on the progress of the Committee (4). FOUNDATION FOR RESEARCH, SCIENCE AND TECHNOLOGY The Foundation is a Crown agency established under the Foundation for Research, SCience and Technology Act The Foundation has two functions which are defined in the Act: 1 To allocate funds for the production of public good science outputs. 5

11 2 To provide independent policy advice to the Minister on matters relating to research, science and technology, including advice on national priorities for those matters. In addition to its principle functions the Foundation Act places further responsibilities on the Foundation. The Foundation must: Consult with representatives of industry, researchers, and the community before formulating advice to Government. Publish for the scientific community and the public a copy of any advice which it gives to the Minister on national priorities for research. Make purchases in accordance with the priorities which are advised to the Foundation by the Minister. Invite competitive proposals for the provision of public good science outputs (4). THE ROYAL SOCIETY OF NEW ZEALAND The Royal Society is established by statute and has a responsibility to give advice to Government on all aspects of science policy. The Society, which consists mainly of Fellows, represents scientific societies which are affiliated. The Royal Society in New Zealand has a much closer relationship to Government than similar societies in other countries. The legislation under which the Royal Society operates is under review. The Royal Society Act 1965 gives the objectives of the Society as: 1 To promote science, to encourage and stimulate high standards of scientific endeavour and achievement and to give recognition to notable achievements in the advancement of science in New Zealand. 2 To inform the Minister of fields in which, in the opinion of the Council, the scientific effort of New Zealand should be increased; and to make suggestions as to how this may be done. 3 To initiate and maintain contacts between New Zealand scientists and SCientists in other parts of the world especially by association with the Unions of the International Council of Scientific Unions and other scientific bodies overseas, and by ensuring that New Zealand is appropriately represented at meetings of those bodies. 4 To administer funds for scientific research or scientific projects. 6

12 5 To initiate meetings or participate in meetings of scientists in New Zealand, whether by collaboration with its member bodies or otherwise, to hold symposia, and to arrange for visits of overseas scientists to New Zealand. 6 To initiate and maintain contacts between scientists in New Zealand, and to provide liaison between and correlate the efforts of its member bodies and other New Zealand scientific bodies. 7 To publish and disseminate scientific knowledge, and to make available sources of scientific information. 8 To do au other lawful things which the Society or the Council may consider conducive to the attainment of the objects of the SOciety. In addition, there is a special provision (s.9) which reads: Obligation to initiate investigation - The Society shall, whenever called upon by the Minister of Science or any other Minister of the Crown, initiate investigations and procure reports upon any scientific subject. 7

13 3. TERMS CURRENTLY USED IN SCIENCE AND TECHNOLOGY POLICY As a result of reforms, a number of terms have come into common usage, often derived from the academic literature, to refer to specific elements of science and technology. Words in bold in this section refer to words defined elsewhere in the glossary. ACflVlTIFS are the processes by which organisations convert inputs into outputs (3). APPLIED RESEARCH see section six. APPROPRIABILIlY is the extent to which the benefits of research and development may be privately or otherwise captured (5). BENCHMARK REVIEW is a review of all Crown funded research and development under-taken by the Ministry of Research, Science and Technology to provide a statistical and descriptive overview of research and development programmes, providers, staff and funding (8). BIBLIOMETRIC ANALYSIS is the quantitative study of groups of publications categorised by subject area, authors, organisations, etc. (14). CENTRE OF EXCELLENCE see section seven. CITATION ANALYSIS is the study of the frequency of references made to a particular publication in other publications (14). COLLABORATION means two or more science providers and/or users planning and executing their research and development efforts together (8). CONTESTABLE means an absence of regulatory, institutional or other arbitrary barriers to entry by competitors to a market. In the New Zealand science and technology context, contestable refers to multiple providers bidding for programme funding from a variety of funding sources, including the Public Good Science Fund (19). COPYRIGHT is the exclusive legal right to reproduce certain types of work (books, films, software, patterns, etc. (5). CROWN RESEARCH INSTITUTE see section seven. DEMONSTRATION of a technology is a project involving a new technology operated at or near full scale in a realistic environment for the purpose of either (i) formulating national policy or (ii) promoting the use of technology (8). 8

14 DEPARTMENf refers to any state sector organisation listed in the first schedule of the State Sector Act 1988 (8). DIFFUSION is used to describe the spread of discrete identifiable technical changes (9). DUPLICATION means the same narrow research and development project or programme being pursued by two or more providers (8). ENGINEERING is the process which uses materials or appues the power and forces within nature to work for the needs or benefits of people, making use of both sdence and technology as appropriate, and within economically viable constraints (16). ESTIMATES are a statement of the Crown's proposed expenditure of public money in accordance with the Public Finance Act 1989 (3). EXPERIMENf is the test of an hypothesis under controlled conditions and constitutes one of the smallest identifiable units of a research and development project (12). EXPERIMENfAL DEVELOPMENf see section six. EXTRAMURAL RESEARCH AND DEVELOPMENf EXPENDITURE means all payments made during a reference period, usually one year, for the performance of research and development outside a particular unit, institution or sector of performance, including payments made outside New Zealand (2). FAR-MARKET RESEARCH is research and development that could eventually be commercially exploited, but the specific application is not yet clear at the time it is carried out (10). FORESIGHT is the overall process of creating an understanding and appreciation of likely future trends. Foresight includes qualitative and quantitative means of monitoring clues and indicators of evolving trends and developments and is most useful when directly linked to the analysis of poucy implications (11). FUNDAMENfAL RESEARCH see section six. GENERIC SOCIAL POLICY RESEARCH means operational social policy research aimed at developing policy options on comprehensive social policy issues which require perspectives wider than those of particular department (8). GENERIC TECHNOLOGIES are those with the potential to be applied to a wide range of applications in many diverse industry sectors. They 9

15 include advances in basic concepts, processes and instrumentation to create new products or improve existing ones (8). INFORMATION is data that has been recorded, classified, organised, related, or interpreted within a framework so that meaning emerges (12). INFORMATION BASE is a collection of information, either uncollated or organised, held in electronic or written form, and available for searching. The information held may be bibliographic, textual, numeric or graphic (8). INFORMATION TRANSFER is the active process by which two or more parties exchange information (8).. INFRASTRUCTURE is the institutional, physical and other supportive elements that enable science and technology to be conducted. It includes buildings and laboratory space and their maintenance, equipment (ranging from small equipment to major national facilities), and science and technology information resources, including libraries. Workshops, central computing fadlities, and factors important to research and development such as support for travel and international interactions, are also considered as components. Technical and administrative support is normally considered as part of the research and development infrastructure (8). INNOVATION is the transformation of an idea into a new or improved saleable product or operational process or a new approach in environmental or SOCial science (1). INPUTS are the resources (people, finances, accommodation, equipment, supplies, etc.) used to produce the goods and services which are the outputs of the organisation (3). INfELLECTUAL PROPERTY is knowledge of potential economic significance that is formally protected through a legally enforceable property right, e.g. through trademarks, patents, copyrights (8). INfRAMURAL RESEARCH AND DEVELOPMENT EXPENDITURE means all payments actually made during a reference period, usually one year, for the performance of research and development within a particular unit, institution or sector of performance, whatever the source or origin of funds (2). INVENTION is a novel idea, sketch or model for a new or improved product, process or system (9). MERIT REVIEW is an extended form of peer review which goes beyond assessment of Scientific excellence and takes account of potential for economic, sodal or environmental benefit (14). 10

16 MILESTONES are preset indicators which identify the achievement of specific objectives within a set timeframe (14). NATIONAL SCIENCE STRATEGY is the co-ordination of public and private sector providers, funders and users in an area of scientific and technological activity of national importance and approved by Government as warranting special attention (8). NEAR-MARKET RESEARCH is research and development that offers the prospect of commercial exploitation or application (whether as a product, process or system) within a short enough timescale to justify investment by the private sector (10). OBJECTIVES are statements of intended results. They should be achievable, measurable and include target dates but may have differing degrees of specification. While all objectives refer to desired future states, those states may relate to outcomes, outputs, management systems or inputs (3). OPERATIONAL RESEARCH is research funded through departmental votes and established by chief executives to: support policy advice to Ministers, assist with the execution of statutory duties, support purchasing decisions, evaluate practice, programmes or policies funded by organisations (usually departments), support departmental advisory services to industry or the community, support the production of specific outputs which are agreed between chief executives of departments and their Minister, and appear in the departments' corporate plan (8). OUTCOMES are the impacts on, or the consequences for the community of the outputs or activities of Government. Outcomes therefore provide the rationale for Government action, and the basis upon which decisions should be made concerning the desired outputs and activities of Government. Unlike outputs, outcomes will be influenced but not controlled by individual Government agencies (3). OUTPUTS are defined for the purposes of the Public Finance Act 1989, as the goods and services produced by departments. In distinguishing outputs from outcomes, it is helpful to ask "can the provider produce it (output) or is it contributing towards making it happen (outcome)?" An output is something over which the producer has effective control, and can therefore be held accountable for its production or delivery (3). 11

17 OVERLAP occurs where the same broad research projects and/or programmes are being pursued by two or more providers and/or users (8). PATENT is the right to monopoly use for a limited period and under specified conditions (5). PEER REVIEW is the provision of advice and recommendations on a project or programme by experts in relevant areas (14). PRE-COMMERCIAL RESEARCH is research and development that may eventually be commercially exploited, but the specific application is not yet sufficiently ciear to Justify investment by commerciallnterests (8). PROGRAMME means a coordinated set of research and development projects, which is directed towards the attainment of similar or related objectives (8). PROJECT means a group of interrelated research and development experiments aimed at obtaining original results by creating new theories and methods, improving the understanding of nature, inventing and developing new products or processes, discovering new fields of investigation, etc. The progress achieved on a project is usually reported upon separately as a whole. The work performed may, or may not, be directed towards a specific practical aim (8). PROPERlY RIGHfS is the system of rights governing use of a resource, its transferability and how it may be transformed, of which patents, trademarks etc. are subsets (5). PROVIDER means an organisation or individual in the public or private sector, who has the capacity and carries out scientific and technological activities (8). PUBLIC GOOD SCIENCE FUND is the New Zealand Government fund administered by the Foundation for Research, Science and Technology for the purchase of public good science outputs (8). PUBLIC GOOD SCIENCE OUTPUTS as defined in the Foundation for Research, Science and Technology Act 1990 are science outputs that: are likely to increase knowledge or understanding of the physical, biological, or social environmenti or are likely to develop, malntain, or increase research skills or scientific expertise that are or is of particular importance to New Zealandior may be of benefit to New Zealand, but are unlikely to be funded, or adequately funded, from non-government sources (18). 12

18 RESEARCH ASSOCIATION see section seven. RESEARCH AND DEVELOPMENT INfENSITY is the ratio of research and development expenditure to outputs (1). RESEARCHER see section eight. SCIENCE refers to: a branch of study in which facts are observed and classified, and usually, quantitative Jaws are formulated and verifiedj and which involves the application of mathematical reasoning and data to natural phenomena. the process of scientific research (12). SCIENCE CENTRE see section seven. SCIENCE OUTPUTS means goods and services, including information, that relate to scientific and technological activities (8). SCIENCE OUTPUT CLASS is a categorisation of scientific and technological activities to which the science outputs contribute. For New Zealand the categorisation is based on an expanded version of the OECD socio-economic objective classification (8). SCIENCE PARK see section seven. SCIENCE REVIEW is a series of rigorous reviews of the quality and relevance of all Crown funded research and development, managed by the Ministry of Research, Science and Technology, but undertaken by review teams comprising New Zealand and international scientists, and science users. The reviews identify research opportunities and themes. They are undertaken on a four year rolling schedule. The unit for each review is one or more science output classes (8). SCIENTIFIC METHOD is the establishment of a con census in the scientific community on the rules that govern the conduct of science. These rules involve the interplay of theory and experiment, reproducibility, simplicity, the ability to make predictions and the eventual uniqueness of the explanation (13). SCIENTIFIC RESEARCH AND EXPERIMENTAL DEVELOPMENf see section four. SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES see section four. SCIENTIFIC AND TECHNOLOGICAL EDUCATION AND TRAINING see section four. 13

19 SCIENTIFIC AND TECHNOLOGICAL SERVICES see section four. SCIENTIST see section eight. SOCIO-ECONOMIC OBJECTIVES refer to the OECD classification system of research and development activities which identifies the principal area of expected national benefit (1). STRATEGIC RESEARCH see section six. TECHNICIAN see section eight. TECHNOLOGIST see section eight. TECHNOLOGY is conceptualised as having three dimensions: a body of information of practical use developed either from the application of scientific knowledge or by acquiring knowledge by observation apart from using science (16). techniques which are systematic methods and procedures, involving people and 'hardware' utilised to achieve desired goals. physical apparatus (machines, tools and instruments) used in production (15). TECHNOLOGY ADOPTION is the use of a new technology by others than those who developed it (17). TECHNOLOGY ASSESSMENT is the systematic identification, analysis and evaluation of the potential secondary consequences of technology in terms of its impact on sodal, cultural, political, economic and environmental systems and processes (11). TECHNOLOGY CENTRE see section seven. TECHNOLOGY DEVELOPMENT is the conversion of information and knowledge into products, services, processes, systems or devices (17). TECHNOLOGY FUSION is the amalgamation of disparate knowledge and information in a form more readily understood by users (17). TECHNOLOGY INCUBATOR see section seven. TECHNOLOGY LEVELS is a classification of industries based on an OEeD system using research and development intensity as its basis. Three broad categories are recognised: high, medium and low technology industries (1). 14

20 TECHNOLOGY PARK see section seven. TECHNOLOGY TRANSFER see section six. THEMES are areas of research and development either within or between science output classes which are identified as priority areas within the public good science fund (8). 15

21 4. DEFINITION OF SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES The origins of the following definitions stem from historical and ongoing studies by the OECD and UNESCO who have sought to standardise the information Inputs into International statistics on scientific and technological activities. SCIENTIFIC AND TECHNOLOGICAL AcnvmEs These are systematic activities which are concerned with the generation, advancement, dissemination and application of scientific and technical knowledge in all fields of science and technology. These Include such activities as scientific and technical education and training, the provision of scientific and technological services, and scientific research and experimental development (1). It is within the scope of science and technological activities that scientific and technical knowledge Is created, distributed, collected, modified, transformed, adapted for use or utilised. SCIENTIFIC RESEARCH AND EXPERIMENTAL DEVELOPMENT This comprises creative work undertaken on a systematic basis in order to Increase knowledge, Including knowledge of humankind, culture and society and the use of knowledge to devise new applications (1). Any activity classified as scientific research and experimental development Is characterised by originality; it should have Investigation as a primary objective, the outcome of which Is new knowledge, with or without a specific practical application, or new or Improved materials, products, devices, processes or services. Scientific research and experimental development ends when the activity Is no longer primarily investigative. Scientific research can be distinguished from experimental development If it has all four of the elements of creativity, novelty, the use of scientific methods and the generation of new knowledge (1). Scientific research activities in the natural sciences, engineering and technology, medical and agricultural sciences can be defined as any systematic and creative activity designed to ascertain the links between, and the nature of, natural phenomena, to generate knowledge of the laws of nature and to contribute to the practical application of this knowledge of laws, forces and substances (2). 16

22 Scientific research activities in the social sciences and humanities can be defined as any systematic and creative activity aimed at increasing or improving knowledge of humanity, culture and society, including use of such knowledge for the solution of social and human problems (2). Scientific research and experimental development will be referred to throughout the remainder of the document as research and development. EXCLUSIONS FROM RESEARCH AND DEVELOPMENT The following activities are excluded, except where they are used primarily for the support of, or as part of research and development projects: Engineering and technical services. Scientific and technical Information services. General purpose or routine data collection. Operations research and mathematical or statistical analysis. Routine quality control and routine testing. Feasibility studies (except into research and development projects). Specialised routine medical care. Commercial, legal and administrative aspects of patenting, copyrighting or licensing activities. Routine computer programming, systems work or software maintenance. Prospecting, exploring or drilling for, or producing minerals, petroleum or natural gas. POlicy related studies, management studies, efficiency surveys and other studies relating to analysis or assessment of existing polides or operations (1). 17

23 BORDERLINE BElWEEN RESEARCH AND DEVELOPMENT AND OTHER ACTIVITIES IN MINING Research and development in mining does not include surveying and prospecting for existing natural resources including oil, minerals or natural gas for subsequent exploitation and production of goods and services, except for the following activities: the development of new surveying methods and techniques. surveying undertaken as an integral part of a research project on geological phenomena. research on geological phenomena undertaken as a subsidiary part of surveying and prospecting programmes (1). BORDERLINE BElWEEN RESEARCH AND DEVELOPMENT AND OTHER INDUSTRIAL ACTIVITIES If the primary objective is to make further technical improvements on the product or process, then the work comes within the definition of research and development. If, on the other hand, the product, process or approach is substantially set and the primary objective is to develop markets, to do pre-production planning or to get a production or control system working smoothly, then the work is no longer research and development (1). 18

24 SOME BORDERLINE CASES BElWEEN RESEARCH AND DEVELOPMENT AND OTHER INDUSTRIAL ACTIVITIES Item Treatment Remarks Prototypes Include in R&D As long as the primary objective is to make further improvements Pilot plant Include in R&D So long as the primary purpose is R&D Design & drawing Divide Include design required during R&D. Exclude design for production/ processes Trial production and Exclude Except "feed-back" R&D tooling-up After-sales service and Exclude Except "feed-back" R&D trouble-shooting Patent and licence work Exclude All administrative and legal work connected with patents and licences (Except patent work directly connected with R&D projects) Routine tests Exclude Even if undertaken by R&D staff Data collection and Exclude Except when an integral part of market research R&D Public inspection control, enforcement of standards, regulations Exclude BORDERLINE BElWEEN RESEARCH AND STUDIES Studies involve collecting, processing and analyzing data for decision making and planning. Studies are often made by organisations as an integral part of their planning activities. The results are mainly descriptive, are not widely published and cannot easily be generalised or utilised for other purposes. This contrasts to. the activities of research which are usually performed in scientific units, their aim is to produce results which can be generalised or be generally used. The activities are often connected to other research, financed from research funds, the results have a considerable novelty value and are more widely published (6). 19

25 BORDERLINE FOR RESEARCH AND DEVELOPMENT IN THE SOFIW ARE INDUSTRY Two general criteria can be used to identify research and development in the software industry: Purpose: If the purpose of the activity is to increase scientific and technological knowledge and/or to devise new applications of knowledge. Nature: there must be an appreciable element of novelty or Originality, the use of scientific methods, and/or an element of creativity. In the software industry, "novelty" implies new techniques, or substantial improvements to existing techniques. "Existing techniques" are those representing knowledge accessible to professionals normally competent in the field, without them having to prove inventive activity. Thus, modification or tailoring of an application for a customer, using pre-existing methods, is not research and development. Software development usually consists of three phases: the conceptual phase, the programming phase, and the packaging and software dispersal phase. A project should be considered as research and development If the conceptual phase consists of: a preliminary or feasibility study, a functional analysis or external specification of what is to be achieved, and an analysis or internal specification of the structure to be used. A software project which is considered to be research and development should also include an element of technical hazard, i.e. there should be an element of risk that the project will not succeed technically. If the conceptual phase of the project was considered to be research and development, then the programming phase should be regarded as development, and included. The packaging and marketing phase should not be considered as research and development (6). 20

26 SCIENTIFIC AND TECHNOLOGICAL EDUCATION AND TRAINING These activities comprise spedaiised non-university higher education and training, higher education and training leading to a university degree, post graduate and further training, and organised lifelong training for sdentists and engineers (1). BORDERLINES BElWEEN RESEARCH AND DEVELOPMENT AND NON-RESEARCH AND DEVELOPMENT SCIENTIFIC AND TECHNOLOGICAL EDUCATION AND TRAINING In institutions of higher education, research and teaching are always closely linked. Research and development is usually based on the proportion of working time devoted to research by university staff. The borderline is less clear in the case of post-graduate students, which may involve training in research. These borderline activities are categorised by the OECD according to the criteria outlined in the following table using International Standard Classification of Education (ISCED) levels (1). BORDERLINE BE1WEEN RESEARCH AND DEVELOPMENT AND EDUCATION AND TRAINING AT ISCED LEVEL 7* Education and Training at Level 7 R&D Other Activities Teachers Postgraduate Students Teaching students at Supervision of R &: D Teaching at levels level 7. projects required for lower than 7. students' qualification Training students at at level 7. Other activities. level 7 in R&D methodology, laboratory work, etc. Supervision of other R &: D projects and performance of own R&D projects. Course work for Performing and Teaching at levels formal qualification writing up R&D lower than 7. including projects required for independent study, formal qualification. Other activities. work etc. Any other R&D activities. * ISCED Level 7: Education at the third level, second stage, of the type that leads to a post-graduate university degree or equivalent (1). 21

27 SCIENTIFIC AND TECHNOLOGICAL SERVICES These are activities concerned with research and development, and contributing to the generation, dissemination and application of sdentlflc and technical knowledge (1). They form an active link between research and development and the production of goods and services, and can be divided Into two groups: Support Services for Research and Development Dissemination Services for Sdence and Technology Support Services for Research and Development These services may have highly qualified personnel who have considerable material resources, and are capable of undertaking research and development activities should the occasion arise. It includes: Testing, standardisation, metrology and quality control, e.g. routine work concerned with the analysis, control and testing of materials, products, appliances and processes by known methods, together with the establishment and maintenance of legal standards and units of measurement. The routine collection of general scientific data for nonresearch purposes, e.g. topographical, geological, hydrological and oceanographic data; routine astronomical, meteorological and seismological observations; the charting of soils, minerals, plant life, animal life and fish; the routine testing of soils, air and water; the regular monitoring and supervision of levels of pollution and radioactivity. Sdence and technology does not normally include the collection of data on human, sodal, economic or cultural phenomena unless the cost of collection is minimal compared with the cost of research and development using these data, Le. Statistics Department data. Scientific and technological collections, the items of which could be the object of research and development activity, e.g. sdence and/or technology museums; botanical and zoological gardens; anthropological, archaeological, geological collection, etc. Dissemination Services for Science and Technology The task of these services is to disseminate sdentific and technological knowledge (including technology transfer) within the field covered by the science and technology (Le. to the active participants in the science 22

28 and technology function, such as research workers and those responsible for sdence and technology policy) and outside sdence and technology, in support of the education function and the functions related to the production of goods and services. They include: Dissemination of scientific and technological documentation and factual data, e.g. sdentiflc and technological services including editing and publishing provided by libraries, archives, information and documentation centres, reference services, sdentific congresses and symposia, scientific and technological data bases. Popularisation, scientific advisory services and technical assistance, e.g. extension services for agriculture and industry; bilateral and multilateral technical co-operation; day-to-day activities of engineering departments and project-study offices, which give advice on the application of sdentlfic and managerial knowledge. Submission and registration of patents and licences, e.g. systematic investigations of a sdentific, legal or administrative nature on patents and licences, carried out in public agendes. SCIENfIFIC AND TECHNOLOGICAL INNOVATION This may be considered as the transformation of an idea into a new or improved saleable product or operational process in industry and commerce, or Into a new approach to a sodal or environmental sdence. It thus consists of all those sdentiflc, technical, commerdal and finandal steps necessary for the successful development and marketing of new or improved manufactured products, the commerdal use of new or improved processes and equipment, or the introduction of a new approach to a sodal or environmental sdence. Research and development is only one of these steps (1). Besides research and development, a range of other activities may be distinguished in the innovation process. These include: New product marketing and market research. Patent work. Finandal and organisational changes. Final product or design engineering. Tooling and industrial engineering. Manufacturing start-up and quality assurance. Furthermore, in the case of innovations based on government research and development programmes, there may be a significant "demonstration" stage in the process. 23

29 s. DEFINITION OF SECTORS PERFORMING RESEARCH AND DEVELOPMENT In order to facilitate the collection of data, the description of institutional flows of research and development funds and the analysis and interpretation of research and development data, information is defined and grouped by the OEeD (1) into five sectors. BUSINESS ENTERPRISE SECTOR This sector includes all firms, organisations and institutions whose primary activity is the production of goods or services for sale to the general public at a price intended approximately to cover at least the cost of production. Private non-profit institutes mainly serving them are also included. This sector includes Research Associations and State Owned Enterprises, regional and local government. GOVERNMENT SECTOR This sector is composed of all departments, offices and other bodies which furnish but normally do not sell to the community those common services which cannot otherwise be conveniently and economically provided, and administer the state and the economic and social policy of the community. Public business enterprises are included in the Business Enterprise sector. PRIVATE NON-PROFIT SECTOR This sector includes private or semi-public organisations which are established not to make a profit (except for those controlled by institutions in the other sectors), and includes private individuals not servicing business who conduct research in their own time with their own facilities. This sector is not surveyed separately in New Zealand, but is included in the Business Enterprise sector. HIGHER EDUCATION SECTOR The sector is comprised of all universities, colleges of technology and other institutes of post-secondary education, whatever their source of finance or legal status. It also includes all research institutes, 24

30 experimental stations and clinics operating under the direct control of, administered by, or associated with, higher education establishments. In New Zealand this sector includes Universities, Colleges of Education and Polytechnics. ABROAD This sector consists of all institutions and individuals located outside the political frontiers of a country except for vehicles, ships, aircraft and space satellites operated by domestic organisations, and testing grounds acquired by such organisations. All international organisations (except business enterprises) including facilities and operations within the frontiers of a country, are also included. 25

31 6. DEFINITION OF TYPES OF RESEARCH AND DEVELOPMENT ACTIVITY Throughout the literature, alternative classifications of types of research and development activity are evident. The following five stage categorisation has been adopted for New Zealand. The major features of this classification are (a) the incorporation of technology transfer, not a research and development activity as defined in the glossary but vital for achieving the outcomes of research and development and (b) the subdivision of the commonly used international definition of basic research into fundamental and strategic research. Overlaps between these categories often blur the distinctions (8). FUNDAMENTAL RESEARCH Experimental or theoretical activities undertaken primarily to acquire new knowledge of the underlying foundation of phenomena and observable facts, without any particular application or use in view. Sometimes referred to as pure or basic research. STRATEGIC RESEARCH Research activities conducted to support long-term "national needs" and directed into specific broad areas in expectation of useful discoveries, or providing the broad knowledge base necessary for solution of recognised practical problems. APPLIED RESEARCH Research activities to acquire new knowledge which is directed primarily towards a specific and pre-determined objective or application, and including possible uses for the findings of fundamental research. EXPERIMENTAL DEVELOPMENT Systematic work, drawing on existing knowledge gained from research and/or practical experience that is directed to producing new materials, products or devices, to installing new processes, systems and services, or to improving substantially those already produced or installed. 26

32 TECHNOLOGY TRANSFER Activities directed at encouraging the exploitation of knowledge by a specified recipient in a different place to its origin through a range of media and means, including concepts, processes and products, with the aim of its application to social, environmental and economic areas. 27

33 7. DEFINITION OF FACILITIES INVOLVED WITH SCIENTIFIC AND TECHNOLOGICAL ACTIVITIES Sdentific and technological activities are conducted by a number of organisations and carried out in a wide range of fadlities. In recent years a large number of names for these facilities have entered common usage. Some of the more commonly used titles are presented, although in some instances the distinctions are marginal. CROWN RESEARCH INSTITUTE A Crown-owned organisation with the purpose of establishing research and development capabilities, carrying out research and development, and providing related sdentific and technological services (8). RESEARCH ASSOCIATION An industry or sector spedfic incorporated sodety, established for the purpose of conducting research and development, and accountable to its membership (8). SCIENCE PARK A property-based initiative located at a single site which: has formal and operational links with one or more universities, research centres, or other institutions of higher education (usually, although not exclusively, located nearby); is designed to encourage the formation and growth of knowledgebased industries and other organisations normally resident on site; and has a management function which is actively engaged in the transfer of technology and business skills to tenant organisations (7). TECHNOLOGY PARK A collection of "new technology" orientated industrial companies concerned with both research and manufacturing, located on a single site and situated within a reasonable catchment area of a sdentific 28

34 university or major research institute. The provision of a management group to provide a supportive environment Is often associated with such developments (7). TECHNOLOGY INCUBATOR A multl-tenanted bulldlng with small units, shared faclllties (e.g. secretarial, computer, fax, etc.) and management support, orientated towards facilltating the growth of new technology businesses. These new businesses may be the outcome of the commercialisation of research being undertaken at a university or some other research Institute. The Incubator mayor may not be located In a science or technology park. When associated with the commerciallsation of university or institute research, the term Innovation Centre rather than technology Incubator is sometimes used (7). TECHNOLOGY CENTRE An organisation, usually located In a single building complex, that has been established to promote stronger links between the providers of technology and technology services (e.g. universities, research institutions, major corporates), and the end-users in local industry. It may employ its own skilled staff as well as the services of technologyorientated academic and research institutions, to provide advisory, training and research and development services to Industry in the field of product innovation and the application of new technology to the production process. It may also be involved in the growing of new businesses based on the commercialisation of Institutional research (7). CENTRE OF EXCELLENCE The following criteria can be used in identifying a research facility as a "centre of excellence"; The boundary of its research Interest can be defined. Its achievements demonstrate a clear, consistent and focused research strategy. Research work is pre-eminent in New Zealand and internationally recognised to be of the highest quality. Research is particularly relevant to New Zealand's needs. There is an adequate and sustainable level of human and physical research resources. Communication with research users is strong, and mechanisms promoting the adoption of results are effective. There is a strong and effective organisational culture and management (8). 29