Gross domestic expenditure on R&D (GERD) as a percentage of GDP
GERD indicates a country’s investment in R&D, in both the public and the private sectors. Expenditure on R&D is believed to be related to a country’s future capability to innovate and generate economic growth, particularly when the investment is conducted by firms. "Research and experimental development (R&D) comprise creative work undertaken on a systematic basis in order to increase the stock of knowledge, including knowledge of man, culture and society and the use of this stock of knowledge to devise new applications"" (Frascati Manual, 2002 edition, § 63 ).”