R&D costs are, by definition, operating expenses and thus should NOT be subtracted from gross margins. The opinion piece you link states: "Gross margin is gene

R&D costs are, by definition, operating expenses and thus should NOT be subtracted from gross margins. The opinion piece you link states: "Gross margin is generally considered the incremental profit margin delivered by the sale of a product" This is not remotely correct. The author is confusing Gross Margin with marginal profit, sometimes referred to as variable margin.