The four indicators provided are GERD (Gross domestic expenditure on R&D) as a percentage of GDP, percentage of GERD financed by industry, percentage of GERD financed by government and percentage of GERD financed from abroad. "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, ยง 63 ). R&D is an activity where there are significant transfers of resources between units, organisations and sectors and it is important to trace the flow of R&D funds.