Large-scale projects (in areas like defence, aerospace or big science) usually cover a spectrum of activity from experimental to pre-production development. Under these circumstances, the funding and/or performing organisation often cannot distinguish between R&D and other elements of expenditure. The distinction between R&D and non-R&D expenditure is particularly important in countries where a large proportion of government R&D expenditure is directed to defence.
It is important to look closely at the nature of costly pilot plants or prototypes, such as the first of a new line of nuclear power stations or of icebreakers. They may be constructed almost entirely from existing materials and use existing technology, and they are often built for simultaneous use for R&D and for providing the primary service concerned (power generation, ice breaking). The construction of such plants and prototypes should not be wholly credited to R&D. Only the additional costs due to the experimental nature of
these products should be attributed to R&D.
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