30 / 01 / 2020

OECD released the latest R&D tax credits data

On 30 January 2020, the OECD released its update of the R&D tax credits country profiles with the latest internationally comparable information on the design and cost of R&D tax relief to incentivise business R&D. Drawing on the OECD R&D Tax Incentives database, which was updated in December 2019, the profiles highlight trends in the use of R&D tax incentives in the innovation policy mix across countries, including EU Member States.


Some key facts emerged from the analysis:

  • In addition to providing grants, contracts and loans, many governments contribute to business R&D through tax incentives;
  • Over the 2006-17 period, total government support for business R&D expenditure as a percentage of GDP increased in 29 out of 45 countries for which data are available;
  • Some countries that appear to give little support on the sole basis of direct funding, are in fact providing significant assistance through the tax system;
  • A few countries (e.g. Canada, Hungary, Japan, Spain, and the United States), provide R&D tax incentives at both central and subnational level.


In addition to this analysis, the OECD released its new innovation indicators which is the largest edition (including 39 countries) of these indicators, with first time comparable results for US and other major economies.


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