DEFINITION CURRENT EXPENDITURE
Composed of labour costs and other current costs (including for external R&D personnel) used in R&D. Services and items (including equipment) used and consumed within one year are current expenditures. Annual fees or rents for the use of fixed assets should be included in current expenditures (Frascati Manual, 2015).
DEFINITION LABOUR COST
- Sum of the basic annual salary and other emoluments (such as EPF contributions, medical benefits, performance bonuses, special allowances, housing and car loans of each personnel involved directly in R&D)
- Important: Should include only share/prorated labour cost for employed persons when they make a direct contribution to R&D, especially if such persons do not work full-time on R&D activities.
DEFINITION OPERATING COST
Such as consumables, repairs, maintenance, purchasing of materials, prototypes, subscription to reference to reference databases and commissioned work.
DEFINITION OTHER CURRENT COST
- Wages and salaries of personnel indirectly supporting R&D. Include only that part of their wages and salaries that is attributable to the indirect support of R&D (e.g. sum of paid salary and wages for GRAs)
- Non-capital purchase of materials, supplies, equipment and services (include water, fuel/gas and electricity)
- Books, journals, reference materials, subscriptions
- Materials for laboratories (chemicals, animals, etc.)
- Administrative and other overhead cost
- Royalties or licenses for the use of patents and other intellectual property rights
- Lease of capital goods and rental of buildings to support R&D
- Costs for computer software that is used for one year or less
- Cost for external R&D personnel