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Dimension          Economy
             Sub-Dimension      Productivity

             Category           Innovation
             KPI Name           R&D Expenditure
             KPI No.            EC: P: IN: 1C      Type:         Core           Type:          Structural

             Definition /       Research and Development expenditure as a percentage of city GDP
             Description

             Rationale /        R&D is defined as research and development activities in natural sciences and
             Interpretation /   engineering, social sciences and humanities, and other inter-departmental
             Benchmarking       disciplines. This includes any creative systematic activity undertaken to increase
                                the stock of knowledge, including knowledge of man, culture and society, and the
                                use of this knowledge to devise new applications. 
                                R&D also includes fundamental research, applied research in such fields as
                                agriculture, medicine, industrial chemistry, and experimental development work
                                leading to new devices, products or processes.
                                The Frascati Manual defines R&D as “creative work undertaken on a systematic
                                basis in order to increase the stock of knowledge (including knowledge of
                                humans, culture and society), and the use of this stock of knowledge to devise new
                                applications.”
                                Data collection methodology for this indicator could be adapted from the Frascati
                                Manual (an internationally recognized methodology for collecting R&D statistics).

                                An increasing trend and higher values are considered positive.
             Source(s)          NOTE 1 – UNESCO Sustainable Development Goal 9.5. Retrieved from <http:// uis
                                .unesco .org/ en/ topic/ sustainable -development -goal -9 -5>

                                NOTE 2 – UNECE. Promotion in Services Sector. Retrieved from <http:// www .unece
                                .org/ fileadmin/ DAM/ ceci/ publications/ icp3 .pdf>
                                NOTE 3 – OECD Frascati Manual. Retrieved from <http:// www .oecd .org/ sti/ inno/
                                frascati -manual .htm>
             Methodology        Calculate as:
                                Numerator: R&D expenditure (USD).

                                Denominator: City GDP (USD).
                                Multiply by 100.
             Unit               Percentage
             Data Sources       Data can be sourced through municipal economics departments, business
             / Relevant         associations or through interpretation of national economic statistics.
             Databases














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