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08.07.2020

Research and Development Expenditure in the COVID-19 Pandemic

Current Article Analyses Effects on the Corporate Sector in Austria

According to a current article of WIFO-Monatsberichte (monthly reports) by Andreas Reinstaller, the economic downturn associated with the COVID-19 pandemic may lead to a decline in corporate R&D spending growth in Austria by 5 percentage points compared to 2019.

This decline may affect both the further development of R&D spending itself and long-term productivity growth, thereby increasing the economic costs of the crisis beyond 2020. Due to the high level of uncertainty, additional countercyclical R&D funding may be necessary to minimise these long-term effects.

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