Abstract
The steady increase in research and development (R & D) activities in modernizing societies reflects increasing specialization and professionalization in the creation of the knowledge that underlies inventions and innovations in products, processes, services, and in related systems of organization. Functionally specialized R & D departments emerged in business firms in the nineteenth century, as did complementary and more theoretical R & D activities and training in universities and related institutions. National R & D expenditures have increased with national income per head, as has the share funded and performed by business firms. However, these R & D activities are only one aspect of the invention and innovation process; a variety of other science and technology indicators have been developed and are now applied in order to reduce risks associated with bringing a product through the stages of R & D to market. Major contemporary problems in R & D relate to increasing complexity, increasing internationalization and localization, the changing role of academic research, and the barriers imposed by intellectual property protection (especially patents).