Agreeing on a definition of poverty is central to producing valid and reliable measures. Defining poverty, and a normative adequate standard of living, also carries practical significance for targeting assistance and tracking outcomes. Common measures like Gross Domestic Product (GDP) and the Gini coefficient are aggregates and cannot differentiate the global poor from the non-poor, nor were they intended to.
Research and development (R&D) is work that pertains to innovation, introduction, and improvement of products and processes. The R&D process for new products and services often takes years and large investments to come to fruition, and funders face the risk that some investments may fail to generate returns to investors or benefits to users. Thus, estimates of the costs, risk, and potential returns to R&D projects all influence funders’ decisions around where to invest.