What is R+D+i?

It is common for the word R+D+i, or Research, Development and Technological Innovation, to generate some confusion among entrepreneurs. Many think that this term is reserved only for large corporations or research centers with advanced laboratories. However, the reality is that many startups and SMEs are already carrying out R+D+i activities without knowing it.

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What really is R+D+i?

When we hear this word, many people imagine a team of scientists in a laboratory. But R+D+i goes beyond that. It is not exclusive to large technological or scientific industries; we can find R+D+i activities in sectors as diverse as food, fashion or software development.

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Another common mistake is to think that to be considered R+D+i, projects must be revolutionary or excessively disruptive. Disruptive innovation is an example of R+D+i, but it's not the only one. Improving an internal process or adapting existing technologies to apply them in a new context also counts as R+D+i. The key lies in the effort to improve, optimize or create something that didn't exist in the company before.

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How to know if your company is doing R+D+i?

‍You may already be doing it without realizing it. Have you spent time researching how to improve a product? Are you testing new technologies or methodologies to make a process more efficient? Or perhaps you have developed your own software to solve an internal need? These activities can fall within the framework of what is considered R+D+i, even if they seem to be part of everyday life.

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What then does the acronym I+D+i refer to?

‍According to Article 35 of the Corporate Tax Act, R+D+i refers to the search for new knowledge. It's about investigating, exploring, carrying out studies and experiments to better understand the scientific and technological world.

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To begin with, the “I” for Research refers to original and planned inquiry that seeks to discover new knowledge and greater understanding in the scientific and technological field. It includes the creation of new theorems and algorithms, as well as operating systems, languages, interfaces and applications aimed at developing new or substantially improved products, processes or services.

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La “D” for Development refers to the application of research results or any other type of scientific knowledge for the manufacture of new materials or products, or for the design of new production processes or systems, as well as for the substantial technological improvement of pre-existing materials, products, processes or systems. This includes the materialization of new products or processes in plans, diagrams or designs, the creation of non-marketable prototypes and pilot projects that cannot be used for industrial applications or commercial exploitation.

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Finally, the Lowercase “i” for Technological Innovation It deals with the activity whose result is a technological advance in obtaining new products or production processes, or substantial improvements to those that already exist, which differ substantially from those that existed previously. This activity includes the materialization of new products or processes in plans, schemes or designs, the creation of non-marketable prototypes, initial demonstration projects or pilot projects, provided that they cannot be converted or used for industrial applications or for commercial exploitation.

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It is important to be clear that not every change is innovation, nor is every project research. R+D+i are not those activities that only improve surface aspects of a product, such as aesthetic or seasonal changes. Neither is the adaptation of existing products to a customer's specific needs. In addition, routine activities such as maintenance, industrial production or the solution of technical problems in processes that have already been implemented do not count as research, development or technological innovation.

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In short, R+D+i are key activities that drive progress in the world of technology and business. Research gives us knowledge, Development turns those ideas into something tangible, and Technological Innovation allows us to create truly new products and processes.

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Why is it important to identify if your company is doing R+D+i?

‍Because, in addition to the intrinsic benefits of improving products and processes, these activities can offer you access to tax deductions, grants and public aid. Organizations such as CDTI and ENISA, among others, strongly support research and development, especially in startups and SMEs. Identifying your R+D+i activities can open doors to new funding and support opportunities.