Understanding how knowledge creation and dissemination contributes to economic growth and societal wellbeing requires a sound evidence base. Throughout history, the outcomes from research and development (R&D) have transformed people’s lives and societies in multiple ways, as well as the natural environment we are part of. This realisation has created a sustained demand among policy analysts and decision makers for documenting the level and nature of both human and financial resources that different countries, regions, firms and institutions devote to such endeavour, as a first step towards learning how to direct them towards desired objectives. Supporting this evidence need through internationally comparable statistics and a common language is the main objective of this manual.

The Frascati Manual has been an international standard for more than fifty years and it is now a world standard. The use of research and experimental development (R&D) statistics, based on the guidance in the manual, has gained influence and the statistics are being used in a wide range of policy areas, and in many countries outside of the OECD. The manual provides the basis for a common language for talking about R&D and its outcomes. In keeping with the extensive use of the manual, and the presence of its definitions in other international manuals and in country regulations, the definition of R&D and its components have been kept close to those in previous editions. More attention has been spent on identifying boundaries between what is and what is not R&D and on meeting new demands on R&D statistics. An example is the decision to treat expenditure on R&D as a capital investment in the System of National Accounts (SNA) and this has required greater attention to the flows of funds for R&D. Tax incentives for R&D performance are widespread and a chapter has been added to cover this. A new chapter has been added to address globalisation and its implications for R&D statistics. To remain current, extensive use is made of online annexes. This chapter introduces the manual.