This story is interesting. Now, R&D expenses will be counted as part of R&D.
Here’s the pro-State troll argument. Suppose you work in the R&D department and get paid $100k. That should be counted as part of GDP, because you spend $100k buying goods and services. However, those $100k goods you bought WERE ALREADY COUNTED IN GDP. In effect, the same transaction was counted twice!
Here’s another way to look at it. Suppose a buy a new car for $10k. That’s $10k counted towards GDP because the car was manufactured. Suppose I immediately sell that car for $10k. Does that mean the GDP increased by another $10k? No, it didn’t.
Suppose a corporation spends $500M in R&D, leading to sales of $1B next year. Now, the R&D spending is double-counted. There’s $500M contributed to GDP this year and $1B next year, but only $1B of goods were produced. If R&D is counted as $500M one year, then $500M should be deducted the next year as the R&D spending leads to goods and services being produced.
There are continual “enhancements” to the way that GDP and the CPI are calculated. The pro-State troll excuse is “This makes them more accurate!” However, the “enhancements” usually lead to bias, causing the economy to look better than it actually is.