How R&D Assistance Influences Company Behaviour

How R&D Assistance Influences Company Behaviour: A survey investigating behavioural additionality effects of the R&D Tax Concession Program, looks at how the R&D Tax Concession program impacts on company behaviour by examining the concept of 'behavioural additionality', that is, the difference in firm behaviour resulting from a government intervention. The report was released in July 2007.

The report found that as a consequence of using the R&D Tax Concession, companies changed their behaviour during and after undertaking R&D activities. The main impact on company behaviour included:

  • 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
  • increased collaboration with universities.

These results indicate the importance of the R&D Tax Concession for building innovative companies in Australia. It contributes to competence building, networking and commercialisation, all of which are characteristics of innovating companies.

This report also compares the results, of the survey of R&D Tax Concession companies, with an earlier study which looked at the behavioural impacts of R&D grants assistance on company behaviour. This earlier study, reported in Behavioural Additionality of Business R&D Grant Programmes in Australia, found that government R&D grant funding induced 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. 

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 bookshop

Further information on the financing of business R&D, including effect of government policy on business R&D, is available from the OECD website: Financing of Business R&D


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