Measuring R&D Output and Knowledge Capital Formation in Open Economies

Contrary to mineral exploration, computer software development and literary or artistic work, Research and Development is in the present SNA-1993 not considered as an activity leading to the creation of intangible assets. It is expected that this will change in the course of the coming SNA update. This paper discusses a number of conceptual and practical issues concerning the representation of R&D expenditure in the national accounts, including its capitalisation.