DEFINITIONS

Applied research — original investigation undertaken in order to acquire new knowledge directed primarily towards a specific practical aim or objective.

Basic research — theoretical or experimental work undertaken primarily to acquire new knowledge of the underlying foundations of phenomena and observable facts, without any particular application or use in view.

Employee — person who sells his or her labour to an employer (has an employment relationship with the employer) and in return receives remuneration in money (wages and salaries, fee, piecework pay, compensation).

Experimental development — systematic work drawing on existing knowledge gained from basic or applied research which is directed to producing new or substantially improved materials, products, devices, to installing new or substantially improved processes, systems and services.

Full-time equivalent (FTE) — working time spent on R&D by R&D personnel in person-years.

Research and experimental development (R&D) comprise creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society, and the use of this knowledge to devise new applications.

METHODOLOGY

The statistical survey “Research and experimental development” consists of two separate parts included in different questionnaires. One covers the non-profit institutional sectors, the other one refers to the business enterprise sector. The principles to form the frame of the survey are also different.

The frame of the survey for business enterprise sector is based on the list of R&D performing enterprises whose R&D activities are detected in the financial statistics survey. The list is continuously updated with the enterprises receiving financing from the Science Foundation and Enterprise Estonia, the enterprises showing R&D expenditure in their yearly report and with the information from other sources.

The frame of the survey for non-profit sectors consists of registered research institutions, universities and higher schools, associations and foundations whose activities include R&D. The list is continously updated with information on units performing R&D from Science Foundation, Enviromental Investment Centre, Enterprise Estonia and other sources.

The data on R&D from enterprises based on international methodology are collected by Statistics Estonia since 1998, from non-profit institutions from 1994. The methodology of statistics on R&D is based on “Proposed Standard Practice for Surveys on Research and Experimental Development: Frascati Manual”, last version of this manual was published by OECD in 2002, and on the methodological recommendations of Eurostat.

Research and experimental development covers basic research, applied research, and experimental development (see definitions).

 

The activities to be excluded from R&D are:

Activities connected with scientific and technical information — collecting, translating, analysing, disseminating such information, bibliographic, patent or license services (except when carried out solely for the purposes of a specific R&D project).

General purpose data collection, processing and analysis in the field of natural and social phenomena (normally, only the state has the needed resources), such as topographical mapping, routine geological, hydrological and meteorological surveying, as well as regular statistical surveys. When data are specially collected as part of the R&D project or primarily for the purpose of R&D project, the activities should be attributed to R&D. Data collected for other or general purposes (as for example, the Labour Force Survey) should be excluded from R&D even if exploited for research. Market surveys should never be included in R&D.

Testing and standardisation — the maintenance and calibration of national standards, routine testing and analysis of materials, products, processes, soils or atmosphere.

Feasibility studies of proposed engineering and social projects based on already existing methodology. However, feasibility studies on research projects are part of R&D.

Specialised health care concerning routine investigation and normal application of medical knowledge. There may, however, be an element of R&D, especially in university hospitals, where the newest experimental methods are used. If it is a part of research project then it is included in R&D.

Patent and license work, excluding patent work connected directly with R&D projects.

 

According to international methodology, the R&D performing units are grouped into four institutional sectors:

business enterprise sector — all enterprises, organisations and institutions whose primary activity is the market production of goods or services (other than higher education) for sale at an economically significant price; the sector includes also private non-profit institutions mainly serving them;

higher education sector — all universities, and other educational institutions providing higher education and all institutions under their direct control or associated with them (research institutes, clinics, scientific centres), whatever their source of finance or legal status;

government sector — all departments and offices financed by the state or municipalities whose primary activity is not the market production of goods and services and which do not belong to the higher education sector; the sector includes also private non-profit institutions mainly financed by government;

private non-profit sector — non-profit associations, societies, foundations and their scientific units (excluding those mainly financed by government or serving enterprises).

The term non-profit sectors is used for the last three sectors in order to distinguish them from the business enterprise sector.

 

To follow the financial flows between the economic sectors, the classification of the sources of funds coincides with that of economic sectors, however, the fifth one is added to cover foreign sources:

government — basic or special financing from the government as well as from municipal budgets, funds received from foundations financed by the government (incl. grants), own funds of institutions of the government sector (from the sale of products or services, leasing of rooms, etc.);

business enterprise sector — enterprise’s own funds, payments received from other enterprises for services or on contract basis, etc;

private non-profit sector — payments received from private non-profit institutions for services or on contract basis, etc.; own funds of private non-profit institutions;

universities and higher schools — payments received from universities and higher schools and from scientific institutions associated with them for services or on contract basis, etc.; own funds of universities and higher schools;

foreign capital — funds received from international foundations or on the basis of international agreements, payments received from abroad for services or on contract basis. Support from European Union, international organisation, foreign state or foreign non-governmental organisation mediated through governmental budget are classified as government not foreign funds.

 

The employee is engaged in R&D if at least 10% of his working time is spent on R&D tasks. The R&D personnel can be divided into the following three categories:

researchers — all professionals with an academic degree or higher education diploma engaged in basic or applied research or experimental development to create new knowledge, products, processes, methods and systems; all academic staff engaged in R&D activities, as well as managers and administrators engaged in planning and management of the scientific and technical aspects; postgraduate students and persons attending doctor’s courses, who perform original research. Persons who are occupied as researchers but whose educational level is lower, performers of routine analysis, bibliographers, programmers, etc. should be classified as technicians;

technicians — persons with vocational or technical education engaged in R&D activities and performing the tasks under the supervision of researchers; the same applies to persons who perform their R&D tasks under the supervision of researchers in the field of social sciences and humanities;

supporting staff includes craftsmen, secretarial and clerical staff participating in R&D projects or directly associated with such projects.

 

The R&D personnel do not include security guards, cleaners, caterers, bookkeepers, personnel executives, librarians, IT-personnel, equipment maintenance personnel, etc. If employees in the listed categories provide services to R&D units, then their corresponding labour costs must be regarded as other current costs.

The R&D personnel is measured in persons as well in full-time equivalents (FTE) that is working time spent on R&D by R&D personnel in person-years. A university teacher must divide his working hours between teaching and research, as well as an employee in enterprise must divide his working time between the production work and research. The value of FTE is based on estimation and it lies between zero and one. It can be one only in case the person is fully engaged in R&D during the whole working time.

With respect to expenditures devoted to R&D, the intramural expenditure is measured, i.e. the expenditure on the research and experimental development, which are performed within each statistical unit by its employees. Otherwise, the data would be doubled as both the performer and the customer will record the amount. The extramural expenditure, i.e. the expenditure devoted to R&D and performed outside the statistical unit, is of interest only in the case of the business enterprise sector, as it allows to follow the connections and co-operation between enterprises and scientific institutions, and is one of the indices of the innovativeness of enterprises. If there is a reference just to R&D expenditure for a country or an economic sector in publications, one can be sure that only intramural expenditure is included. The data on expenditure reported by R&D performing units are mostly based on estimations as there is no legal basis to perform separate accountancy for R&D.

The classification of socio-economic objectives is based on 2007 version of the “Nomenclature for the Analysis and Comparison of Scientific Programmes and Budgets” (NABS 2007). Main diffrence from older version (NABS 1992) lies in division of chapter “Social structures and relationships” into three separate chapters Culture, recreation, religion and mass media”, “Education” and “Political and social systems, structures and processes”. New version is used since 2008 data collection and the corresponding tables have undergone changes in texts and structure.

CLASSIFICATIONS

Fields of science and technology (by OECD)

1

Natural sciences

1.1

Mathematics and computer sciences (hardware development should be classified in the engineering fields)

1.2

Physical sciences (incl. astronomy, space sciences, physics, etc.)

1.3

Chemical sciences

1.4

Earth and related environmental sciences (geology, geophysics, mineralogy, physical geography, meteorology, atmospheric sciences, oceanography, vulcanology, paleoecology, etc.),

1.5

Biological sciences (biology, botany, bacteriology, microbiology, zoology, entomology, genetics, biochemistry, biophysics, etc., excluding clinical and veterinary sciences)

2

Engineering and technology

2.1

Civil engineering

2.2

Electrical engineering and electronics (incl. communication systems, hardware, etc.)

2.3

Other engineering sciences (mechanical engineering, equipment-building, technology of manufacturing, technology of food production, geodesy, industrial chemistry, etc.)

3

Medical sciences

3.1

Basic medicine (anatomy, cytology, physiology, pharmacy, toxicology, immunology, pathology, etc.)

3.2

Clinical medicine (anaesthesiology, paediatrics, gynaecology, surgery, dentistry, neurology, psychiatry, radiology, therapeutics, otorhinolaryngology, ophthalmology, etc.)

3.3

Health sciences (social medicine, hygiene, nursing, epidemiology, public health services)

4

Agricultural sciences

4.1

Agriculture, forestry, fisheries and allied sciences

4.2

Veterinary medicine

5

Social sciences

5.1

Psychology

5.2

Economics

5.3

Educational sciences

5.4

Other social sciences (anthropology, ethnology, demography, geography, town planning, management, law, linguistics, political sciences, sociology, but physical anthropology, physical geography and psychophysiology should normally be classified with natural sciences)

6

Humanities

6.1

History (together with archaeology, numismatics, palaeography, genealogy, etc.)

6.2

Languages and literature

6.3

Other humanities (philosophy, history of science, arts, history of art, art criticism, religion and theology, creativity subjects, etc.)

MORE DATA

Teadus- ja arendustegevus. Research and Development. Yearbook

Eesti statistika aastaraamat. Statistical Yearbook of Estonia

CONTACT PERSON

Aavo Heinlo

Enterprise Statistics Department

Tel +372 625 9217

aavo.heinlo@stat.ee

Updated: 16.06.2009