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1. 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
2. There is a large variation in the level of
direct R&D funding across countries
Government support of business R&D, 2011: direct funding (contracts and grants)
As percentage of GDP
But this only provides a partial picture of
the total support provided by countries
Source: OECD STI Scoreboard 2013 – forthcoming 23 October 2013
2
3. Currently, many governments subsidise
R&D through their tax system
Implied tax subsidy rates on R&D expenditures, 2013
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
4. Several countries provide a more generous
treatment for SMEs
Implied tax subsidy rates on R&D expenditures, 2013
Extra subsidy provided to R&D in SMEs in France
Source: OECD STI Scoreboard 2013 – forthcoming 23 October 2013
4
5. Tax subsidy varies if profits are too low –
refunds and carryovers are sometimes offered
Implied tax subsidy rates on R&D expenditures, 2013
Canada and France allow full
refund but only for SMEs
Finland allows carry forward of
incentives, but not full refund
Austria allows full refund
Source: OECD STI Scoreboard 2013 – forthcoming 23 October 2013
5
6. Some countries rely strongly on R&D tax
incentive support
Government support of business R&D, 2011: direct funding and tax incentive support
As percentage of GDP
Share R&D tax
support 50/70%
Share R&D tax
support 70-85%
Source: OECD STI Scoreboard 2013 – forthcoming 23 October 2013
6
7. These estimates provide a more complete
picture of government support…
Government support of business R&D, 2011: direct funding and R&D tax incentives
As percentage of GDP
Source: OECD STI Scoreboard 2013 – forthcoming 23 October 2013
7
8. … which leads to different international
rankings
As percentage of GDP
Government support of business R&D, 2011: direct funding and
R&D tax incentives…
Source: OECD STI Scoreboard 2013 – forthcoming 23 October 2013
8
9. What are the trends?
Change in government support of business R&D through direct
funding and tax incentives, 2006-11
The economic crisis has slowed down the move towards more R&D tax incentives
Source: OECD STI Scoreboard 2013 – forthcoming 23 October 2013
9
9
10. Business R&D intensity and government
support to business R&D, 2011
Correlation between total support – R&D intensity, but not necessarily causal
OECD estimates: an additional instrument to test impacts of support policies
Source: OECD STI Scoreboard 2013 – forthcoming 23 October 2013
10