Directorate for Science, Technology and Innovation

Measuring Tax Support for R&D and Innovation


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In addition to direct support measures such as grants, governments worldwide increasingly rely on tax incentives to promote business R&D and encourage innovation and economic growth. Since 2007, the OECD has been developing measurement and analysis methodologies to provide qualitative and statistical evidence on the use, cost and impacts of R&D tax incentives.


Latest data, December 2019: Update of the OECD R&D tax incentive database with the latest edition of time-series estimates of government tax relief for R&D tax expenditure (GTARD) and implied marginal R&D tax subsidy rates across OECD and partner economies. These data highlight trends in the magnitude of tax incentive and direct support for business R&D from 2000 to 2017 and the notional levels of R&D tax subsidy by firm size (SME, large firm) and profit scenario (profitable, loss-making) from 2000 to 2019.



Measuring R&D tax support: Findings from the new OECD R&D Tax Incentives Database

Latest publication, November 2019:

The OECD STI Working Paper "Measuring R&D tax support: Findings from the new OECD R&D Tax Incentives Database" highlights the potential of this database as an analytical tool for assessing the effectiveness of R&D tax incentives in stimulating business R&D investment.

It presents the results of a new OECD cross-country study of the link between government support for R&D – direct and tax support– and business R&D in OECD member countries over the 2000-16 period. 



 Next update: January 2020



information on the Design and scope of R&D tax incentives


oecd publications and papers on r&d tax incentives


microBeRD: an oECD study on the impact of R&D tax incentives

The OECD is working on a n micro-data project which applies a “distributed” approach to the empirical analysis of micro-data. The microBeRD project investigates and models the incidence and impact of public support for business R&D in collaboration with national experts with access to confidential R&D and public support micro-data. This approach facilitates a co-ordinated statistical analysis of the impact of tax relief design features and their interaction with direct forms of public R&D funding by exploiting variation in support within and across countries.


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