Community Research and Development Information Service - CORDIS

  • European Commission
  • Publications
  • Evaluation and design of R&D tax incentives, Report of the CREST Expert Group on Fiscal Measures, Second cycle of the Open Method of Coordination in favour of the 3% objective


CREST decided at its meeting on 18th March 2005 to establish an Expert Group on the “Design and evaluation of tax incentives to promote business research, development and innovation”. The Expert Group was given the task of producing a report that should include the following:
- Guidelines for the design and use of fiscal measures
- Guidelines for the evaluation of fiscal measures, and if necessary, also propose further initiatives that could develop expertise in this field;
There is wide agreement that government support for business R&D is beneficial for society. The question is therefore not whether government should give support, but how and to what extent.
Conditions vary considerably between member states. The economic and industrial structures are different, the level of R&D as percentage of GDP and the distribution of R&D between the public and private sectors and between industries varies, as do the tax systems and R&D and industrial policy frameworks. Due to these differences, there is not one single answer to whether a country should use tax incentives to increase R&D, how such a system should be designed or how it should be evaluated.
This being the situation, the Expert Group is not in a position to give firm advice to member countries as to which solutions they should choose. Through its discussions, however, the Expert Group has concluded what in general seem to be sensible solutions regarding tax incentives to promote business R&D and the evaluation of these. The Expert Group therefore suggests that member states consider these general conclusions when discussing whether they should have tax incentives and which designs might be most appropriate under prevailing circumstances in each member state.

Additional information

Authors: No author stated, European Commission, DG Research, Brussels (BE)
Bibliographic Reference: EUR 22097 EN (2007), 80 pp. Free of charge
Availability: (Catalogue Number: KI-NA-22097-EN-C)
ISBN: ISBN: 92-79-02267-9
Follow us on: RSS Facebook Twitter YouTube Managed by the EU Publications Office Top