With the Research and Development (R&D) Tax Credit in Ireland, there are three eligible research categories (Basic Research, Applied Research and Experimental Research). From the three categories, one or more must be carried out to qualify as an R&D Tax Credit claim. To help understand and interpret the categories we have outlined the definition of each as well as provided industry specific examples.
Basic Research means “experimental or theoretical work undertaken primarily to acquire new scientific or technical knowledge without a specific practical application in view”. Some examples of basic research are:
- Formulation and development of a new therapeutic and innovative drugs.
- Biomedical research, basic biology research.
- Bench scale research, formulation analysis.
- Clinical research.
- Development of an innovative medical device or technologies.
Applied Research means “work undertaken in order to gain scientific or technical knowledge and directed towards a specific practical application”. Applied research is usually undertaken either to determine possible uses for the findings of basic research or to determine new methods or ways of creating practical applications. Some examples of applied research are:
- Applied research is a form of systematic inquiry involving the practical application of science. It assesses and uses some part of the research accumulated theories, knowledge, methods and techniques.
- Drug delivery, biotechnology, process technology.
- Product and process development.
- Utilisation of new technologies, new material for allowing the product development to be able to influence the disease.
Experimental Development means “work undertaken which draws on scientific or technical knowledge or practical experience for the purpose of achieving technological advancement and which is directed at producing new, or improving existing, materials. Some examples of experimental development are:
- Systematic and scientific approach to research in which the researcher manipulates one or more variables, and controls and measures any change in other variables.
- Research where the scientist actively influences something to observe the consequences.
- Further design and development of products e.g. drugs, cosmetics, medical devices.
- Development of advanced functionalities and applications.
- Product and process improvement and enhancement.
- Design of experiments and tests to define the research or the problem.
- Innovation in pharmaceutical experimentation.
- Improving yield, quality and productivity
- Further advancement in clinical pharmacology and experimental medicine
For a detailed evaluation on understanding the research categories of R&D, please contact the professionals at Braithwaite:
Victoria Procunier
Senior Business Consultant
Mobile: +353 85 216 6966
Email: vprocunier@braithwaite.ie