Definition: R&D expenditure
Research and development
Expenditures on R&D for a statistical unit can be measured in three complementary ways: intramural expenditures, extramural expenditures and by sources of funds. Nevertheless, the basic measure for R&D expenditure is the "intramural expenditures", which are all expenditures for R&D performed within a statistical unit or sector of the economy, whatever the source of funds (Frascati Manual, § 335).
Research and Development: Annual Statistics 1999, Eurostat, p. 7