In the last newsletter, We debunked the myths surrounding the “systematic” requirement for SR&ED claims, emphasizing that what counts as systematic is more flexible than most businesses realize. Building on that foundation, let’s delve deeper into a key component of systematic investigation: hypotheses. Formulating hypotheses can be daunting, but understanding the nuances of explicit and implicit assumptions can significantly bolster your SR&ED submissions.
The Role of Hypotheses in SR&ED
Hypotheses are the foundation of your R&D efforts, guiding systematic investigation and innovation. They fall into two categories: explicit and implicit. Both play crucial roles in shaping the direction and outcomes of your research, though they function in different ways.
Explicit Hypotheses: The Clear Guide
- Definition: An explicit hypothesis is a clearly defined, testable prediction about the relationship between variables. It serves as the backbone of structured scientific inquiry, providing clear direction and purpose.
- Role in Research: These hypotheses guide your experimental design, data collection, and analysis, ensuring that your research is systematic and focused. This structured approach is essential for meeting SR&ED requirements.
- Example: In an SR&ED project, an explicit hypothesis might state, “Increasing temperature will accelerate the chemical reaction rate,” clearly outlining the variable and expected outcome for investigation.
Implicit Hypotheses: The Unseen Navigator
- Definition: Implicit hypotheses are the assumptions or expectations that guide your research without being formally stated. They often stem from background knowledge or logical reasoning.
- Role in Research: Implicit hypotheses influence research direction and methodology, subtly guiding decisions about variables, expected outcomes, and experimental approaches. While not directly tested, they prevent research from becoming unfocused.
- Example: A researcher developing a new algorithm might assume, “Optimizing for speed will improve overall performance.” This assumption shapes the research approach, even if it isn’t explicitly tested.
Why Both Hypotheses Matter in SR&ED
Understanding and leveraging both explicit and implicit hypotheses are essential for several reasons:
- Guidance and Efficiency: Both provide direction, aiding in data collection, variable control, and overall methodology, ensuring purposeful and efficient research.
- Assumptions and Constraints: Research often occurs under specific assumptions and constraints, forming implicit hypotheses about what is feasible.
- CRA’s Systematic Investigation Requirement: The CRA mandates that SR&ED activities involve systematic investigation, typically through explicit hypothesis testing. However, structured approaches that account for implicit assumptions are also crucial.
Conclusion
Recognizing and leveraging both explicit and implicit hypotheses can significantly enhance your SR&ED claims. Understanding their roles not only meets CRA requirements but also drives more effective R&D activities. If you need help refining your hypotheses and optimizing your SR&ED claims, consider consulting an expert who can guide you through the process.