Experimental development

Definition

Experimental development is the second European-defined research category within R&D aid, alongside industrial research. It involves acquiring and combining existing scientific, technological, business and other relevant knowledge and skills, with the aim of developing new or improved products, processes or services. Think of building and testing prototypes, demonstrations, pilot projects, or trial processes in an environment that approximates real-world practice. Experimental development sits closer to the market than industrial research: it does not primarily gather new knowledge, but applies existing knowledge to arrive at a working result. Many schemes group both categories together and cap them jointly. Under the MIT North Holland Feasibility Project, for example, industrial research and experimental development combined may make up at most 40% of project costs, while the remainder (at least 60%) must go to the feasibility study itself. For the WBSO this European split is not the basis for assessment: that scheme instead tests for technical novelty and technical uncertainty, distinguishing technical-scientific research from the development of software, products or processes. Understanding the distinction between industrial research and experimental development helps explain why some subsidies apply different aid percentages or cost ratios per category.

Frequently asked questions

What counts as experimental development?

Experimental development covers applying existing knowledge to develop new or improved products, processes or services, for example through prototypes, pilots or trial setups.

What's the difference with industrial research?

Experimental development sits closer to the market and applies existing knowledge, while industrial research aims to acquire new knowledge for future products or processes.

Is there a cap on experimental development within a subsidy?

That varies by scheme; under the MIT North Holland Feasibility Project, for example, industrial research and experimental development combined may account for at most 40% of project costs.