R+D+I: meaning of acronyms and why it is important

R+D+I: meaning

Surely more than once you have seen the initials I + D + I whose meaning escapes. In fact, it is normal to see R + D. But when another I is added, we already have a problem and that is that not many know what they mean.

Therefore, on this occasion, we want to focus on it so that you understand 100% what each of the acronyms means and the reason why they are put together. Go for it?

R+D+I: meaning of acronyms

laboratory

To know what the meaning of R+D+I is, we must break down each of the acronyms so that you understand what they mean.

The first I stands for Investigation. The D is for Development and the second I is for Innovation (technological).

As such, R+D+I is included in article 35 of Law 27/2014 on Corporation Tax That says so:

«Research will be considered to be the original planned investigation that seeks to discover new knowledge and a superior understanding in the scientific and technological field, and development to the application of the results of the investigation or of any other type of scientific knowledge for the manufacture of new materials. or products or for the design of new production processes or systems, as well as for the substantial technological improvement of pre-existing materials, products, processes or systems.

The materialization of new products or processes in a plan, scheme or design will also be considered a research and development activity, as well as the creation of a first non-marketable prototype and initial demonstration projects or pilot projects, provided that these cannot be converted. or used for industrial applications or for commercial exploitation.

Likewise, the design and preparation of the sample book for the launch of new products will be considered a research and development activity. For these purposes, the launch of a new product will be understood as its introduction into the market and as a new product, one whose novelty is essential and not merely formal or accidental.

Research and development activity will also be considered the creation, combination and configuration of advanced software, through new theorems and algorithms or operating systems, languages, interfaces and applications intended for the development of new or substantially improved products, processes or services. Software intended to facilitate access to information society services for people with disabilities will be assimilated to this concept, when it is carried out without profit. Regular or routine activities related to software maintenance or minor updates are not included.»

«Technological innovation will be considered the activity whose result is a technological advance in obtaining new products or production processes or substantial improvements of existing ones. Those products or processes whose characteristics or applications, from the technological point of view, differ substantially from those previously existing, will be considered new.

This activity will include the materialization of the new products or processes in a plan, scheme or design, the creation of a first non-marketable prototype, initial demonstration projects or pilot projects, including those related to animation and video games and textile samples. , of the footwear, tanning, leather goods, toy, furniture and wood industries, provided that they cannot be converted or used for industrial applications or for commercial exploitation.»

Research

If it has not been completely clear to you what is meant by research, we will clarify it for you.

This is the process whose purpose is to discover new knowledge or better understand, at a scientific and technological level, something that already exists. To be considered an investigation, two conditions must be met: on the one hand, that there is a better technological or scientific method that justifies that investigation; on the other, that it supposes a novelty, that is to say, that it is a challenge because it did not exist until that moment.

Development

In the case of development, you should keep in mind that it refers to the application of what is obtained in the investigation. We give you an example. Imagine that you are researching a drug to cure any type of cancer. The development would be to manufacture that medicine that would contain the results that have been obtained in the investigation. And this fabrication must also be novel, that is, as a result, something that has not been seen before has to come out of it.

Technological innovation

Finally, we have technological innovation. It refers to the activity that in itself supposes a technological advance obtaining new products, productions or improvements in those that already exist.

An example of technological innovation is advances in animation. If we compare how it was animated before and how it is done now, we would have big differences. And it is that the processes have been improving.

How R+D+I is calculated in the countries

research, development and technological innovation

There is a formula that all countries use for how much they are going to invest in R+D+I. This is achieved by ratio between R&D&I spending and the Gross Domestic Product (GDP).

Once it is obtained, it must be broken down into two parts, public spending on the one hand and private spending on the other.

Why is R+D+I so important?

By now, you may have realized the benefits for companies and for the country of investing in R+D+I. However, it really shouldn't be seen as a money-loss investment.

La research requires financial support in order to get started. Same as development. Both go hand in hand and it requires that investment of money to be able to move forward and get results.

But that's where innovation comes in. The greatest strength of this set is in the latter. And it is that, once it has been invested and developed, innovation focuses on investing that knowledge that has already been achieved to generate money.

In other words, it is a constant cycle. While with R&D money is invested, innovation achieves that, with the results of these two, that investment is recovered and more money is generated.

R+D+I in companies

microscope

In case you don't know, the companies themselves can be a source of R+D+I projects. There are various tools and incentives put in place to help, such as bonuses, tax deductions, aid, subsidies...

However, companies do not know them very well and in many cases they may be doing work that would encompass this project qualification.

Activities such as the development of new products and/or improvements to existing ones, improvements in production processes; or even the use of technology as a novelty at work can be R+D+I projects with which to have advantages.

If your company believes that it may be doing something that would be considered within this type of project, the best thing to do is find out to know if they could be entitled to any or a tax benefit that provides a more significant advance (for example, investing more time and/or money) to achieve faster or more efficient results.

As you can see, the meaning of R+D+I is quite important. After all, it is thanks to the advances that we have reached what society is today, with its pros and cons. Otherwise we would still have to scrub by hand, unable to navigate let alone fly. What do you think?


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