Incentives for innovation

摘要

Engineers are aware of the importance of being innovative in order to remain competitive. Studies show that companies that invest, in research and development (R&D) grow and prosper in increasingly competitive I markets and the UK government, keen to encourage innovation, has introduced significant incentives in the form of corporate tax relief. The incentives are termed 'R&D tax relief'; however, the relief applies to much more than traditional R&D activities. For instance, eligible activities include the experimental development of products in manufacturing and software companies. Companies developing new products, processes, materials or services can also claim relief in many cases. In addition, certain capital expenditure, for instance buildings for prototype testing, may also qualify. The R&D tax relief is similar in many ways to schemes that have been successfully operating for a number of years in other countries such as Australia, the United States and subcontract expenses.