72Scientific Research and Development

based on observed phenomena and facts, without aiming at any particular application or use; (2) applied research, which is original investigation undertaken to acquire new knowledge, with a specific, direct practical objective; and (3) experimental development, which is systematic activity based on existing knowledge, whether from research or practical experience, aimed at producing new materials, products, and devices; installing new processes, systems, and services; and substantially improving existing ones. Experimental research and development activities in this category are not considered supporting activities. This category is divided into two categories: natural sciences and engineering, and social sciences and humanities. This category also includes the development and production of prototypes with the primary objective of further refinement, whether the prototype is linked to mass production or not.