North American Product Classification System (NAPCS) Canada 2022 Version 1.0

642 - Research and experimental development services

This group comprises research and experimental development services in natural sciences, engineering and technology, medical and health sciences, agricultural and veterinary sciences, social sciences, and humanities and the arts. Research and experimental development (R&D) comprise creative and systemic work undertaken in order to increase the stock of knowledge - including knowledge of humankind, culture and society - and to devise new applications of available knowledge. The term R&D refers to three types of activity: basic research, applied research and experimental development. Basic research refers to experimental or theoretical work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts, without any particular application or use in view. Applied research refers to original investigation undertaken in order to acquire new knowledge. It is, however, directed primarily towards a specific, practical aim or objective. Experimental development is systematic work, drawing on knowledge gained from research and practical experience and producing additional knowledge, which is directed to producing new products or processes or to improving existing products or processes.