Note 23 – Research & Development Costs

Research & development (R&D) costs include all primary costs directly related to this function, as well as internal services and imputed depreciation. These costs are incurred for:

  • Development of new products and services
  • Improvement of existing products and services
  • Development of new production processes
  • Improvement of existing production processes
  • Cost for patents
  • Purchase price for product and process know-how to the extent not capitalized

The R&D costs amounted to CHF 160 million (2017: CHF 150 million) and represent the full range of R&D activity. However, the consolidated income statement discloses research & development costs of only CHF 110 million (2017: CHF 95 million), as the remainder of such costs are absorbed in «Cost of goods sold» for R&D products and services sold.