Ineligible R&D Activities for WBSO: What Doesn’t Qualify

Which R&D Activities Do Not Qualify for WBSO?

Not all R&D activities meet the criteria for WBSO benefits. The WBSO scheme is designed to support innovation, technological advancement, and research efforts. Projects that are routine or operational in nature, or that do not involve significant scientific or technical challenges, are generally excluded from eligibility. Here are some examples of activities that do not qualify:

Examples of Ineligible Activities

Positive Example

A company conducting systematic research to develop a new drug that involves overcoming significant technical and scientific hurdles qualifies for WBSO benefits. The project requires extensive experimentation, scientific investigation, and the application of new technologies, making it eligible for support under WBSO.

Negative Example

A company updating its existing inventory management software to fix bugs and improve the user interface does not qualify for WBSO benefits. These activities are considered routine maintenance and operational improvements that do not involve significant technical challenges or innovation.

Why Certain Activities Are Ineligible

The core aim of WBSO is to promote genuine research and development that pushes technological boundaries and fosters innovation. Activities that are routine, repetitive, or operational in nature do not align with these objectives. Projects that focus on maintaining existing systems or making minor adjustments without addressing significant technical challenges are generally excluded from WBSO benefits.

In addition, tasks such as market research or general business activities are not classified as R&D because they do not contribute to technological advancements. WBSO is focused on scientific and technical innovation, and activities that do not directly contribute to these goals will not qualify.

It’s important to ensure that any project seeking WBSO benefits involves direct engagement with R&D processes and is not simply outsourcing these efforts to a third party without substantial internal involvement. Companies need to demonstrate that they are actively involved in solving technical uncertainties and contributing to the development of new or improved products, processes, or technologies.