The term covers basic research, applied research and experimental development. Demonstration is a fundamental part of the development of new technologies and is defined as a project involving an innovation operated at or near full scale in a realistic environment to aid policy or promote the use of innovation (OECD, 2012a) and to show the viability of its application to manufacturers and potential buyers. Industrial priorities for R&D focus on shorter term, incremental improvements designed to maximise returns on these investments.