R&D tax credits
R&D Tax credits
R&D Tax credits are a company tax relief which reduces the company's taxable profits and aims at encouraging greater R&D spending in order to promote investment in innovation. The idea that lies behind such incentives is that firms will increase their R&D spending when their cost of performing R&D falls. In the UK, R&D Tax Credits are the biggest single funding mechanism for business R&D provided by Government .
References
L. M. Branscomb & J.H. Keller (1998), "Investing in innovation - Creating a research and innovation policy that works", the MIT Press, Cambridge, Massachussetts and London, USA.
DTI (March 2004) "Guidelines on the meaning of R&D tax purposes".
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