The objective of academic and institutional R&D is to obtain a new knowledge, which may or may not be applied to practical uses. In contrast, the objective of industrial R&D is to obtain a new knowledge applicable to the company's business needs, that eventually will result in new or improve products, processes, systems, or services what can increase the company's sales and profits.
The National Science Foundation defines three types of R&D: basic research, applied research, and development. Basic research has as its objective a fuller knowledge or understanding of the subject of the study, rather than practical application thereof as applied to the industrial sector, basic research is defined as research that advances scientific knowledge but does not have specific commercial objectives, although such an investigation maybe in the fields of present or potential interest to the company.
Applied research is directed towards gaining knowledge or understanding necessary for determining the means by which recognized and specific need maybe met. In industry, applied research includes investigations directed to the discovery of new specific knowledge having specific commercial objectives with respects to products, processes, or services.
Development is the systematic utilization of the knowledge or understanding gained
from research toward to the production of useful materials, devices, systems, or methods,
including design and development of prototypes and processes.
>At this point, it is important to differentiate development from engineering, which can be defined as utilization of state-of-the art knowledge for the design and production of marketable goods and services. Another words, research creates knowledge, and development develops and builds prototypes and proofs their feasibility.
Engineering then converts these prototypes into products or services that can be offered to the market place or into processes that can be used to produce commercial products and services.
Let us stress the following: the system existed in former Soviet Union, and exist today in Academy of Science coverers all three major types of R&D mentioned above.
The Scientific projects done by Universities primarily cover applied research, and development. It is very well developed communication link between Academy and Universities.
Information provided by: The National Science Foundation