Preliminary Assessment of Tax Incentive Options for Stimulating Business Contributions to University Research and Research Training

摘要

A review is provided of current and proposed legislation pertaining to tax incentives for stimulating business contributions to university research and research training. Relevant published and unpublished literature is reviewed. An analytical framework is developed to address the substantive issues and provide a foundation for analysis. The interview format established and the results of the interviews are described. Conclusions derived from the research efforts suggest that the 1981 ERTA provisions establishing tax credits for certain corporate expenditures in internal and external research and development activities have not had a material stimulating effect on corporate funding of university research and research training. It is suggested that the government could more efficiently stimulate private sector research activity through some form of direct support or subsidization than through tax credits.