Statistical release, 22 April 2025
R&D tax incentives continue to outpace other forms of government support for R&D in most countries. Close to 55% of total support for business R&D in the OECD area is provided through tax incentives.
Tax incentives are a widely used, and economically significant innovation support policy instrument in most OECD member countries and several other major economies.
The average level of tax subsidy per eligible unit of R&D expenditure across the OECD area has stabilised after decades of sustained growth and a recent short-lived correction.
Whilst slowing in 2022, government tax relief for R&D expenditure as percentage of GDP in the OECD area continued its sustained growth trend, reaching 0.13% in 2022, up from 0.05% in 2003.