The 'Ebb and Flow' of Fiscal Support for Research and Development: A New Zealand reflection (2020)
Type of ContentConference Contributions - Other
AuthorsSawyer, Adrian Johnshow all
Investment in research and development (R & D) activities is enhanced through appropriate government support. New Zealand’s (NZ’s) investment in R & D activities as a percentage of GDP has remained low and near the bottom of OECD member countries. Efforts to improve this level in NZ have involved various targeted grants, tax credits (twice), and cashing out of R & D losses (a form of government loan), have ebbed and flowed with the changes in government. In effect R & D support operates like a ‘political football’. This paper reviews NZ’s approach to supporting R & D investment from the early 2000s to the latest tax credit scheme that took effect in 2019. It reveals’ that the level of uncertainty, frequent change and political philosophies has done little to encourage businesses to take risks through increasing their investment in R & D. New Zealand’s experience is one for other countries to learn from, so as to avoid the politicisation of fiscal support which occurs at the expense of uncertainty and poor R & D investment performance.
CitationSawyer Adrian (2020). The 'Ebb and Flow' of Fiscal Support for Research and Development: A New Zealand reflection. University of Tasmania, Hobart, Australia: 32 Australasian Tax Teachers Association Conference. 22/01/2020-24/01/2020.
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Keywordsincentives; New Zealand; policy; R & D (research and development)
ANZSRC Fields of Research16 - Studies in Human Society::1605 - Policy and Administration::160511 - Research, Science and Technology Policy
15 - Commerce, Management, Tourism and Services::1503 - Business and Management::150307 - Innovation and Technology Management