The study, The R&D Tax Concession - Impact on the Firm: Report on a survey of 116 firms, was released in October 2005. The study analysed the responses of the 116 firms surveyed on:
- how the R&D Tax Concession fits into the research and development (R&D) planning and decision-making processes at the firm level;
- its impact on specific projects and overall R&D programs;
- the full range of short-term and longer-term benefits for recipient firms and the nation;
- its impact on firm behaviour, culture and attitudes; and
- factors limiting its impact.
The study found that:
- the R&D Tax Concession encourages additional R&D, has a positive impact on the scope and completion time of projects and broader firm behaviour (attitudes, commitment to R&D and project management);
- R&D collaboration with research organisations tends to increase with the size of the firm;
- firms tend to under estimate the cost and time necessary to complete their R&D (this aligns with the delays that AusIndustry experiences with the timing of R&D grants);
- most smaller firms undertake their R&D in-house;
- the R&D Tax Offset is an important incentive for small firms in tax loss, as it encourages them to undertake additional R&D and commercialisation; and
- strong spillover benefits were found with 47 percent of firms reporting their R&D diffuses to other business, 73 percent reporting environmental benefits and 83 percent reporting human health benefits.