The OECD's Frascati Manual defines R&D as “creative, systematic work undertaken to increase the stock of scientific and technical knowledge and to use it to develop new applications.” The OECD's Frascati Manual is an internationally recognized methodology guide for the definition, classification, and statistical measurement of research and development (R&D) activities worldwide. In this context, R&D includes the stages of basic research (theoretical or experimental acquisition of new knowledge), applied research (acquisition of new knowledge for a specific practical purpose), and experimental development (development of new products or processes based on existing knowledge and experience). R&D activities are related to the advancement of science and technology infrastructure in both the academic and industrial sectors. Engineering and technology are among the main application areas of R&D.

History

The concept of “research and development” was not widespread until the mid-20th century. Although the idea of innovation in industrial production processes dates back to ancient times, the close relationship between scientific research and technological development was officially recognized in the United States after World War II. Vannevar Bush's 1945 report, Science: The Endless Frontier, emphasized the importance of government support for university-based basic research. Following this period, national research councils (e.g., NSF) and major defense projects (NASA, DARPA) were established in the United States and other industrialized countries. From the 1950s onwards, R&D investments by governments and the private sector increased rapidly, and international organizations such as the OECD developed the Frascati Manual to standardize R&D statistics.

Classification

R&D activities can be classified according to their fields and methods. The three main types (basic, applied, experimental) are as described above. Another classification is based on the sectors conducting R&D (businesses, public sector, higher education, non-profit organizations) and funding sources (private sector, government, universities, foreign funds, etc.). Additionally, R&D is divided into sections such as “Natural Sciences,” “Engineering and Technologies,” “Health Sciences,” “Agriculture,” and “Humanities and Social Sciences” within the scope of numerical classification by field. These classifications are useful for tracking the distribution of R&D personnel and expenditures. According to Eurostat data, the majority of R&D in the business sector is concentrated in high-tech engineering fields, with 76% of business R&D expenditures in South Korea focused on Engineering/Technology.

Frascati Manual

The Frascati Manual is an international reference document published for the first time in 1963 by the Organization for Economic Cooperation and Development (OECD) and revised in 2015, which defines the scope, classification, and statistical measurement of research and development (R&D) activities. The guide defines R&D under three main headings: basic research, applied research, and experimental development; it categorizes activities according to the institutions carrying them out (e.g., private sector, public sector, higher education) and scientific fields (e.g., engineering, health, humanities). These standards enable the comparable monitoring of R&D expenditures, personnel employment, and scientific outputs across countries. National statistical offices (e.g., TÜİK), international organizations (e.g., Eurostat, UNESCO, NSF), and policy-making institutions use the Frascati methodology as a basis for measuring and analyzing R&D indicators.

International Definition: According to the OECD Frascati Manual, R&D encompasses basic research, applied research, and experimental development activities.

Types of R&D

Basic research: Studies aimed at producing theoretical knowledge.

Applied research: Research aimed at producing solutions to specific problems.

Experimental development: Activities aimed at developing new products, processes, or systems using existing knowledge.

R&D Sectors

Business sector (private sector)

Public institutions

Higher education institutions

Non-profit organizations

R&D Fields (Frascati FOS Classification)

Natural sciences

Engineering and technology

Medical and health sciences

Agricultural sciences

Social sciences

Humanities

Measurement Indicators

R&D expenditure as a percentage of GDP

Number of R&D personnel (full-time equivalent – FTE)

Number of patents, publications, prototypes, and licenses

International R&D Actors

OECD, UNESCO, Eurostat

Horizon Europe (EU)

NSF, NIH, DARPA (US)

R&D Policies in the US, Europe, and Other Leading Countries

United States: Coordination of R&D policy in the US is carried out by the Office of Science and Technology Policy (OSTP) and the National Science and Technology Council (NSTC). Key R&D funders include the National Science Foundation (NSF), the National Institutes of Health (NIH), the Defense Advanced Research Projects Agency (DARPA), the Department of Energy, and NASA. The Bayh-Dole Act of 1980 transferred patent rights for publicly funded projects at universities to universities and industry, thereby supporting technology transfer. Current strategic priorities include artificial intelligence, quantum information, biotechnology, advanced manufacturing, health, and climate. There are also mechanisms such as the Small Business Innovation Research (SBIR) program to support SMEs and innovative startups.

European Union: At the EU level, R&D is guided by Framework Programs such as Horizon Europe (2021–2027) and the European Research Area (ERA) strategy. EU countries allocated 2.2% of their total GDP to R&D in 2023. The goal is to increase this ratio to 3% across the EU by 2030. Strategic plans (Horizon Europe Plan) emphasize green transformation, digital transformation, and the principles of a competitive and inclusive Europe. It has been committed that at least 10% of the Horizon budget for the 2025–27 period will be allocated to green projects, including biodiversity (35%) and climate (35%), and €13 billion will be allocated to digital technology. Since the Maastricht Treaty, the EU has considered technology promotion to be part of its competitiveness goal. Additionally, within the framework of programs such as the European Green Deal, energy and environmental technologies, sustainable agriculture, health, and space technologies are among the areas of focus.

China: In China, R&D policy is carried out through central planning. It is directed by institutions such as the Ministry of Science and Technology and the Chinese Academy of Sciences. Since 2013, R&D spending has grown rapidly, reaching 2.56% of GDP in 2022 and surpassing the EU in 2019. Regulations such as the Five-Year Development Plans and the “Science and Technology Innovation Law” determine the strategy. China aims to strengthen its national technological sovereignty by prioritizing critical technologies such as semiconductors, artificial intelligence, biotechnology, and renewable energy. Legal reforms have also been implemented to strengthen patent rights and intellectual property regulations. State-supported large-scale R&D initiatives and technology transfer strategies involving foreign investment are being implemented.

Japan: Japan's R&D policy is determined by the Science and Technology Policy Council (CSTP) and the Ministry of Education, Culture, Sports, Science and Technology (MEXT). Basic plans (e.g., the 5th Science and Technology Basic Plan) focus on green and life science investments that will boost innovation in the economy. The goal is to become a leader in science and technology capacity; to this end, emphasis is placed on green innovation and health. Japan, being an aging society, prioritizes health technologies for elderly care and carbon-neutral industry.

South Korea: In South Korea, R&D is supported under five-year plans led by the Ministry of Science and Technology (MSIT). The government is rapidly increasing R&D investments with the goal of becoming a “world-class science and technology hub.” In an industry-focused model, the government offers tax incentives, equipment support, and collaboration programs with external funds to encourage businesses to engage in R&D. Recently, it has been developing joint projects with the US and Japan to enhance international collaborations and plans to establish regional Global R&D Strategic Centers.

R&D Ecosystem in Türkiye

Legislation and Institutions: The most comprehensive regulation promoting R&D in Türkiye is Law No. 5746 dated 2008. Under this law, R&D and design activities are exempt from corporate and income tax, social security contributions are supported for R&D personnel salaries, and customs and VAT exemptions are granted for imported R&D materials. All R&D expenditures incurred at R&D and design centers (100%) are deductible from the tax base. In this context, organizations employing R&D personnel are eligible for tax and SGK support, and R&D centers employing researchers with degrees in “basic sciences” receive additional state support.

TÜBİTAK and Other Institutions: TÜBİTAK is Türkiye's main R&D support institution. It runs numerous programs supporting academic projects (ARDEB), industrial projects (TEYDEB), and university-industry collaborations (1505 Program, etc.). The Ministry of Industry and Technology and Development Agencies develop regional and sectoral R&D strategies and implement grant programs. Development Agencies provide financial and technical support for R&D and innovation activities of SMEs in their regions and organize “project market” events that bring innovative entrepreneurs together with investors. University-industry collaboration is supported through TÜBİTAK, as well as “Public-University-Industry Collaboration Councils” and technology parks (technology development zones). Additionally, institutions such as KOSGEB, TÜBİTAK-TEYDEB, and KOSGEB provide various incubator centers, R&D projects, and entrepreneurship grants.

Trends and Statistics: According to TÜİK, Türkiye's total R&D expenditure reached 377.5 billion TL in 2023, accounting for 1.42% of GDP. Over the past 20 years, R&D expenditure has increased 13-fold to reach 16.1 billion USD. Approximately 65% of expenditures come from the private sector, 30% from higher education, and the public sector accounts for around 5%. The private sector's R&D expenditure constitutes 52.6% of the total, while the public sector follows with 33.1%. TÜBİTAK data shows that the share of high-tech sectors in industrial R&D is steadily increasing, while the number of R&D personnel has increased by approximately 10 times over the past 22 years.

International and Turkish R&D Project Examples

Defense Sector

Single European Sky InterOPerability (SESIOP)

SESIOP is an European Defense Fund (EDF) R&D project coordinated by Airbus. Supported under the 2022 EDF call, this project aims to harmonize military Air Command and Control (C2) systems at the EU level and integrate them with Single European Sky rules. Technically, SESIOP focuses on aircraft mission planning, command, and control processes; for example, protocols and simulation environments have been developed to standardize data sharing between multiple control centers. Expected outcomes include more efficient coordination between civil and military flights in EU airspace and interoperability between command and control boundaries.

National Combat Aircraft (MMU) Project

The contract for the “National Combat Aircraft” project, developed in Türkiye under the leadership of the Defense Industries Presidency (SSB), was signed on August 5, 2016, with TUSAŞ (Turkish Aerospace Industries) as the main contractor. The project is currently focused on the preliminary design phase under the existing contract; during this period, the basic design of the aircraft, engineering work, the establishment of necessary test infrastructure (e.g., wind tunnel, radar cross-section test facilities), and the planning of certification processes are targeted. The ultimate vision of the project is to produce a combat aircraft with conventional engines, low radar visibility, internal weapon bays, advanced avionics, and artificial intelligence-supported sensor fusion. The technical infrastructure and prototype aircraft fuselages obtained so far are outputs of the preliminary design.

Health and Biotechnology

One Health European Joint Programme (OHEJP)

OHEJP is one of the largest “One Health” projects carried out under the EU Horizon 2020 program. The aim of the project is to strengthen cooperation between the fields of human, animal, and environmental health through the “One Health” approach. In this context, joint research and data sharing infrastructures have been developed on issues such as the monitoring of zoonotic diseases transmitted to humans through food, antibiotic resistance, and emerging health threats. Technically, new methods and tools (e.g., integrated epidemiology databases, joint disease surveillance systems) have been developed under the OHEJP; in collaboration with institutions such as the Norwegian Institute of Public Health, artificial intelligence-supported algorithms and statistical models have been created for the early detection of foodborne diseases. As an output, a multi-sector terminology database containing over 600 terms, such as the One Health EJP Dictionary, has been created within the scope of the project, and common frameworks have been developed to harmonize monitoring data. 

Energy and Environment

BIPVBOOST (Building Integrated Photovoltaics Boost)

BIPVBOOST is an energy technology project supported under Horizon 2020 and coordinated by Tecnalia, based in Spain. The project aims to reduce the cost of building-integrated photovoltaic panels (BIPV) and make their production commercially viable. The project has provided standardization solutions such as performance testing methods for BIPV system certification and augmented reality-based design tools. With these innovations, the production efficiency of BIPV panels has increased, and integrated photovoltaics for roof and facade applications have become economically competitive options. 

Türkiye: Lithium Recovery from Boron Waste

Another initiative in the energy sector in Türkiye is Eti Maden's pilot plant for extracting lithium from boric acid processing waste. Within the scope of this project, a pilot plant was established in Eskişehir to extract lithium from waste generated during boron ore refining without harming the environment. This project aims to reduce Türkiye's dependence on foreign sources for this strategically important raw material for the battery sector and to provide domestically sourced lithium for electric vehicles and renewable energy storage applications. Technically, an R&D process has been carried out to enrich boron waste through chemical processes and convert it into lithium carbonate using electrolysis methods.

Agriculture and Food Technologies

Meat4All – Cultured Meat R&D Project

Meat4All is a biotechnology project funded by Horizon 2020 and coordinated by the Spanish company BioTech Foods. The aim of Meat4All is to scale up the production of cultured meat (cellular meat) as a more sustainable source of animal protein. The project focuses specifically on the production of poultry meat through cell culture: To this end, production processes have been adapted for large-scale production (target: 10 tons/year) using bioreactors, with studies conducted on maintaining nutritional value, ensuring food safety of the final products, and reducing production costs to competitive levels. Additionally, the project addresses topics such as the development of culture media for cultured meat that are 100% free of animal-derived ingredients, traceability (non-GMO cell sources), and the sustainability of health claims.

Transportation and Automotive

SHOW (Shared automation Operating models for Worldwide adoption)

SHOW (Shared automation Operating models for Worldwide adoption) is an automation and transportation project supported by the EU Horizon 2020 program. The goal of SHOW is to support the transition to sustainable mobility by promoting the use of automated vehicles in urban transportation. In this context, the project has conducted pilot applications of autonomous vehicles under real-life conditions in 20 cities across the EU. Technically, SHOW has set up demos to assess user acceptance, identify legal and operational constraints, and examine commercial usage models. For example, analyses of user satisfaction, safety, and infrastructure compatibility have been conducted for driverless minibuses and robotaxis in urban areas.