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GM01012 Gross domestic expenditure on research and development by sector of performance and type (2022)

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Kristina Arge Simonsen
6/19/2024
DKK 1,000
Y
4/1/2025
6/19/2024
Yes
Statistics Faroe Islands: www.hagstova.fo/en
GM01012_GERD_RDTYPE
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Research and experimental development statistics are made in accordance with standards of UN (Frasacti manual). This ensures that the figures are comparable with similar figures from other countries.
The data is collected with annual surveys. Research and development
A set of common features identifies R&D activities, even if these are carried out by different performers. R&D activities may be aimed at achieving either specific or general objectives. R&D is always aimed at new findings, based on original concepts (and their interpretation) or hypotheses. It is largely uncertain about its final outcome (or at least about the quantity of time and resources needed to achieve it), it is planned for and budgeted (even when carried out by individuals), and it is aimed at producing results that could be either freely transferred or traded in a marketplace. For an activity to be an R&D activity, it must satisfy five core criteria.
The activity must be:
• novel
• creative
• uncertain
• systematic
• transferable and/or reproducible
Source: Frascati manual 2025, OECD 2015

Performance sector

For the general presentation of R&D statistics, the domestic economy is made up of the entire set of institutional units resident in the economy; these are grouped into four mutually exclusive institutional sectors, namely, Business enterprise, Higher education, Government and Private non-profit, in addition to the Rest of the world sector, in order to capture, for completeness, the relationship with non-resident units. The underlying criterion for grouping institutional units into sectors is the homogeneity of the units in respect of economic objectives, principal functions and behaviour.
The classification of institutional units for R&D purposes aims to ensure full consistency with the definition of R&D and with the explicit needs of established R&D statistics users, as well as with the classification criteria used by the System of National Accounts (SNA).
Five main sectors have been identified for the measurement of R&D:
1. Business enterprise
2. Government
3. Higher education
4. Private non-profit
5. Rest of the world
Source: Frascati manual 2015 (OECD 2015)

Type of R&D

Basic research

is 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

is 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.