Final answer:
Activities related to design, construction, and setup of facilities or equipment do not typically constitute Research and Development (R&D), which involves innovation and developing new technologies. R&D is essential for technological progression, but these activities appear more focused on application rather than innovation.
Step-by-step explanation:
The question asks whether the activity, including design and construction engineering related to the construction, relocation, rearrangement, or startup of facilities or equipment, is considered Research and Development (R&D). Generally, true R&D involves a process of innovation that seeks to develop new technology or advance scientific understanding. However, the described activities seem more related to the practical application of existing knowledge rather than the pursuit of new technology or innovation. Therefore, the answer would most likely be False. These activities may support R&D indirectly but they are not, by themselves, R&D.
Research and development is crucial because it produces technology that can be widely used. But, it requires substantial investment and has inherent risks due to the uncertain future of technological advancements, like the University of Minnesota's decades-long development of a new apple variety. Moreover, since R&D results are available to many, the motivation for firms to invest in such activities can be reduced. These factors are important to consider when evaluating the nature of R&D versus straightforward construction or setup tasks.