Funding for science and technology is typically divided into research and development.
Research refers to the process of generating new knowledge.
If the knowledge does not have any immediate application it is termed basic, otherwise it is applied. Development refers to taking the results of the former and producing actual products or at least prototypes of products. The NAS, in a recent report commissioned by Congress indicated that the division of basic and applied research is not a good one and argued for the combination of the two. State and local governments are similar. In general, they feel that government should not intervene in the market and do not support government grants to support applied research or development, which they consider to be corporate welfare.