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Reference.org
R&D intensity
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<p></p> <p>Research and development intensity (R&D intensity) is generally defined as expenditures by a firm on its research and development (<a href="/facts/R%2526D/2h5UddUu">R&D</a>) divided by the firm's sales. There are two types of R&D intensity: direct and indirect. R&D intensity varies, in general, according to a firm's industry sector, product knowledge, manufacturing, and technology, and is a metric that can be used to gauge the level of a company's investment to spur innovation in and through <a href="/facts/Basic_research/QvrBkrRb">basic</a> and <a href="/facts/Applied_research/13h5uYCH">applied research</a>. A further aim of R&D spending, ultimately, is to increase <a href="/facts/Productivity/yXlzAjC2">productivity</a> (e.g., <a href="/facts/Factor_of_production/gDgCQ5ES">factor productivity</a>) as well as an organization's salable output. </p>