The report, How R&D Assistance Influences Company Behaviour: A survey investigating behavioural additionality effects of the R&D Tax Concession Program, was released in July 2007. The report looks at how the R&D Tax Concession impacts on firm behaviour by examining the concept of 'behavioural additionality' or the difference in firm behaviour resulting from a government intervention.
The report finds that firms make long-term changes in company collaboration, research and development (R&D) management and commercialisation as a consequence of using the R&D Tax Concession.
These results indicate the importance of the R&D Tax Concession for building innovative firms in Australia. It contributes to competence building, networking and commercialisation, all of which are characteristics of innovating firms.
Overall, the report found that the R&D Tax Concession has a positive impact on firms' R&D budgets and speeds up the rate of R&D activity. Other findings in terms of changes within firms include:
- a better understanding of the benefits of R&D
- a higher commitment to R&D
- improved management of R&D
- improved business strategy in the firm and
- increased collaboration with universities.
The report is available for download at the bottom of this page.
An earlier study of the behavioural impacts of R&D grants assistance on company behaviour, Behavioural Additionality of Business R&D Grant Programmes in Australia, was published by the OECD in 2006 in its publication Government R&D Funding and Company Behaviour: Measuring Behavioural Additionality. The full report on the study can be purchased through the OECD online book shop.
This earlier study found that government R&D grant funding induced some behavioural changes in all of the firms studied. The most marked changes in firm behaviour were an increased commitment to R&D, an increased understanding of the benefits of R&D, generation of and/or change in project management and the formation of new collaboration with companies. This study is available for download at the bottom of this page.
Further information on the financing of business R&D, including effect of government policy on business R&D, is available from the OECD.