Government support fOR business R&D – R&D tax incentives
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GOVERNMENT SUPPORT FOR BUSINESS R&D – R&D TAX INCENTIVES OECD STI Scoreboard 2013 (forthcoming 23 October 2013) Pre-release of indicators on R&D tax incentives on 10 October 2013 www.oecd.org/sti/rd-tax-stats.htm
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Government support fOR business R&D – R&D tax incentives. OECD STI Scoreboard 2013 (forthcoming 23 October 2013) Pre-release of indicators on R&D tax incentives on 10 October 2013 www.oecd.org/sti/rd-tax-stats.htm. - PowerPoint PPT Presentation
Transcript of Government support fOR business R&D – R&D tax incentives
GOVERNMENT SUPPORT FOR BUSINESS R&D – R&D TAX INCENTIVES
OECD STI Scoreboard 2013 (forthcoming 23 October 2013)
Pre-release of indicators on R&D tax incentives on 10 October 2013www.oecd.org/sti/rd-tax-stats.htm
There is a large variation in the level of direct R&D funding across countries
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Government support of business R&D, 2011: direct funding (contracts and grants)
As percentage of GDP
Source: OECD STI Scoreboard 2013 – forthcoming 23 October 2013
But this only provides a partial picture of the total support provided by countries
Implied tax subsidy rates on R&D expenditures, 2013
Currently, many governments subsidise R&D through their tax system
New OECD estimates of the value of tax support firms may receive for one € of R&D investment
Source: OECD STI Scoreboard 2013 – forthcoming 23 October 2013
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Several countries provide a more generous treatment for SMEs
Extra subsidy provided to R&D in SMEs in France
Source: OECD STI Scoreboard 2013 – forthcoming 23 October 2013
Implied tax subsidy rates on R&D expenditures, 2013
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Tax subsidy varies if profits are too low – refunds and carryovers are sometimes offered
Finland allows carry forward of incentives, but not full refund
Canada and France allow full refund but only for SMEs
Austria allows full refund
Source: OECD STI Scoreboard 2013 – forthcoming 23 October 2013
Implied tax subsidy rates on R&D expenditures, 2013
Government support of business R&D, 2011: direct funding and tax incentive support
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Share R&D tax support 50/70% Share R&D tax
support 70-85%
Some countries rely strongly on R&D tax incentive support
As percentage of GDP
Source: OECD STI Scoreboard 2013 – forthcoming 23 October 2013
Government support of business R&D, 2011: direct funding and R&D tax incentives
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These estimates provide a more complete picture of government support…
As percentage of GDP
Source: OECD STI Scoreboard 2013 – forthcoming 23 October 2013
Government support of business R&D, 2011: direct funding and R&D tax incentives…
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… which leads to different international rankings
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Source: OECD STI Scoreboard 2013 – forthcoming 23 October 2013
The economic crisis has slowed down the move towards more R&D tax incentives
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What are the trends? Change in government support of business R&D through direct funding and tax incentives, 2006-11
9Source: OECD STI Scoreboard 2013 – forthcoming 23 October 2013
Correlation between total support – R&D intensity, but not necessarily causal
OECD estimates: an additional instrument to test impacts of support policies
Business R&D intensity and government support to business R&D, 2011
10Source: OECD STI Scoreboard 2013 – forthcoming 23 October 2013
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For more information:
www.oecd.org/sti/rd-tax-stats.htm
OECD Science, Technology, Industry Scoreboard 2013INNOVATION FOR GROWTH
Release date: 23 October 2013www.oecd.org/sti/scoreboard
