IDEAS home Printed from https://ideas.repec.org/a/diw/diwdeb/2016-8-3.html
   My bibliography  Save this article

Support for Private Research and Development in OECD Countries on the Rise but Increasingly Inefficient

Author

Listed:
  • Heike Belitz

Abstract

The majority of OECD member states promote companies’ research and development (R&D) activities by providing project funding. Recently, in many countries, tax incentives have also begun to play an increasingly important role. The present study examines the level of R&D support in 18 OECD countries and explores how efficient the system of funding actually is. The main findings show that in the majority of the countries studied, the share of research and development expenditures funded by the government is on the increase. The system has become less efficient, however. Increasingly frequently, one euro of public funding fails to result in a corresponding increase in private R&D spending. In countries with high funding rates and substantial tax incentives (such as France and the UK), companies’ spending relative to economic output has not increased any faster than in countries with considerably lower funding rates and no tax incentives at all (such as Germany).

Suggested Citation

  • Heike Belitz, 2016. "Support for Private Research and Development in OECD Countries on the Rise but Increasingly Inefficient," DIW Economic Bulletin, DIW Berlin, German Institute for Economic Research, vol. 6(8), pages 106-114.
  • Handle: RePEc:diw:diwdeb:2016-8-3
    as

    Download full text from publisher

    File URL: https://www.diw.de/documents/publikationen/73/diw_01.c.527982.de/diw_econ_bull_2016-08-3.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    business R&D; government support; tax incentives;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:diw:diwdeb:2016-8-3. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Bibliothek (email available below). General contact details of provider: https://edirc.repec.org/data/diwbede.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.