Abstract
Conceptual distinction between characterization and evaluation is noticed. Characterization replies to a question "What is this?". Evaluation replies to a question "What value does this have?". It is explained for several examples how characterization and evaluation should be distinguished. Prior to evaluation, the viewpoint or the objectives as the reference for evaluation has to be clearly stated. Process of evaluation consists of establishing the reference for evaluation; clearly indicating and characterizing the object for evaluation, and executing evaluation. It is proposed to characterize and evaluate R&D results on the basis of analogies with the financial statement.
