I am reading a textbook about the derivatives, and it says..
Let $x, y, f(x)\in \mathbb{R}$ then we can define $f'(x)$ as the following:
$$\lim_{h\rightarrow0}\frac{f(x+h)-f(x)}{h}=f'(x)$$
However if $x$ is a vector, then equivalent to the above is the condition
$$f(x+h) = f(x)+f'(x)h+R(h) \Rightarrow \lim_{h\rightarrow 0}\frac{R(h)}{|h|}=0$$
I am quite confused about why is this equivalent and what is $R(h)$ here? Please advise, thanks!
In your formula, it is missing that the limit of $\frac{R(h)}{|h|}$ should be 0.
R(h) stands for the (order one) Taylor reminder, which is defined implicitly by the first equation i.e.:
$$ R(h)= f(x+h) - [f(x)+ f^\prime(x) h] $$
Geometrically, it measures the error in the approximation to the graph of f by the tangent line at x.