SRED Question 3 Continued

In a recent post (http://gordon-feil-sred.blogspot.ca/2017/01/question-3.html) we looked at the third question about a project to which CRA requires the answer to be Yes for the project to be considered as SR&ED.

Part of that question addresses experiment and analysis. Perhaps the easiest way is to quote directly from CRA’s website.

Experimentation and analysis are approaches used to investigate hypotheses. Experimentation involves structured and organized tests and studies to obtain information in order to address the hypotheses. Experimenting involves not only testing and analyzing but also exploring the relationships between tests, explaining the results as they relate to the hypothesis, drawing conclusions, proposing a new hypothesis, or conducting additional tests. Such experimentation can include work on the evolution of prototypes or models.

Analysis is the detailed examination of information to differentiate the various parts of a whole, determine their attributes, or explain their relationships. It is performed against the background of available knowledge and experience and it involves using tools such as models, graphs, statistics, tables, diagrams, mathematical formulas, and computer programs to express this knowledge or experience. Analysis is an integral part of a systematic investigation or search and it can be used to generate or test a hypothesis.

Experimentation and analysis are not to be confused with “trial and error”. The purpose of the systematic investigation involving experimentation and analysis of the outcomes is to obtain understanding of relationships between the factors involved. Trial and error addresses What.  SRED addresses Why and How.
CRA expects that this work has been done by people qualified, by reason of experience or formal training, to perform the experimentation and analysis.