Effects of the COVID-19 Crisis on Corporate Research and Development Expenditure in Austria

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.