- SR&ED stands for Scientific Research and Experimental Development. It is often pronounced “shred.”
- Scientific Research means a systematic investigation or search by means of experimentation in the field of science to gain new scientific knowledge. This covers basic research (advancement of scientific knowledge with no specific practical application being sought) and applied research which usually advances the findings of basic research to apply science to a specific problem. Scientific research is a rarity in business, usually carried out by very large companies, research organizations and universities.
- Most clients perform Experimental Development. This can be defined as advancing the understanding of basic or applied research, applying it to the improvement of existing materials, devices, products or processes. It can also be seen as the incremental advancement of knowledge to resolve a specific technological obstacle.
- Most clients encounter SR&ED when they face a problem that cannot be solved simply by applying known techniques, and they have to systematically experiment to find a solution, where the approach, timeline and/or success are uncertain.
