The activities involved must achieve the advance through the resolution of scientific or technological uncertainty. An uncertainty is deemed to exist when knowledge of something is not readily available or deductible by a competent professional working in that field.
Any activity which directly contributes to achieving the advance and indirect activities related to the project will qualify as R&D.
Therefore, any project which makes an appreciable improvement to an existing process, material, device, product or service or which duplicates the effects of an existing process, material, device, product or service through an advance in science or technology in a new or appreciably improved way would constitute R&D.
For example, a manufacturing company manufactures products using machinery. To increase efficiency, the company are looking at the process by which the goods are manufactured. If the company simply bought a new more modern piece of machinery to replace the existing machinery then this would not qualify as R&D as a project is not R&D just because technology has been used in its creation. However, if the company developed changes to the way the product is manufactured so that they are now made in an appreciably improved way which would result in increased efficiency then this could qualify as R&D. There does not necessarily need to be a change to the actual product being released to the market.
On submission of a claim, the Revenue Commissioners would decide whether a project meets the definition of R&D. To do this they can engage the services of qualified individuals with specialised knowledge in the relevant field of science or technology who will give an opinion as to whether the activities constitute R&D activities.