The types of research and development activity that qualify for US R&D tax credits include: Design and development of new or improved software applications Development of conceptual designs and defining requirements and specifications for new or improved products Development of tooling, fixtures, and dies Building and testing prototypes Development of production processes and equipment Evaluation and testing of new materials for product development Development of data centres, big data, and data mining tools Integration of APIs and other technologies Development of financial or pricing models Development of firmware Network hardware and software development and optimization Developing simulators Development of risk management systems