{"id":106224,"date":"2024-01-22T14:48:37","date_gmt":"2024-01-22T13:48:37","guid":{"rendered":"https:\/\/www.wifo.ac.at\/publication\/106224\/"},"modified":"2026-02-17T16:25:04","modified_gmt":"2026-02-17T15:25:04","slug":"tax-incentives-for-research-and-development-2","status":"publish","type":"publication","link":"https:\/\/www.wifo.ac.at\/en\/publication\/106224\/","title":{"rendered":"Tax Incentives for Research and Development"},"content":{"rendered":"","protected":false},"featured_media":0,"template":"","class_list":["post-106224","publication","type-publication","status-publish","hentry"],"acf":{"subtitle":"","text":"The majority of OECD countries provide support to R&amp;D both through direct subsidies and, increasingly, by means of tax incentives. For a considerable period of time, Austria has been offering an instrument of fiscal support to R&amp;D \u2013 the R&amp;D tax allowance \u2013 that is rather generous by international standards. However, the R&amp;D tax allowance shows some weaknesses. The recent reform of fiscal aid for R&amp;D is designed to eliminate some of these weaknesses by additional measures (a new R&amp;D allowance for R&amp;D expenditure based on the OECD definition, an R&amp;D premium for firms that do not manage to make sufficient profit). This reform of tax incentives for R&amp;D does not leave any firm worse off than before. On the other hand, the system of incentives is becoming increasingly complex, which in turn raises the costs of administration and compliance by firms. Until now the actual use and effects of the R&amp;D tax allowance have not been very transparent and no evaluation has been presented so far. It is recommended to evaluate the new set of instruments according to international standards after they have been in use for three years.","onlinedate":"2002-05-22 12:00:00","lang":"English","publication_series":"","publication_date":"20020501","publication_date_year":"","publication_date_full":false,"publication_num_pages":"","keywords":"[\"Research and Development; R&D; Tax Incentives; Government Aid; Austria; Tax Incentives for Research and Development\"]","jelcodes":"[]","related_publications":"[]","pdf":441047,"zip":null,"link":"https:\/\/www.wifo.ac.at\/wwa\/pubid\/21992","monthly_report":true,"monthly_report_main":false,"monthly_report_volume":"7","monthly_report_pages":"74-85","monthly_report_pages_sort":"74","issue":"2","journal":"Austrian Economic Quarterly","publisher":"","invisible":false,"external":false,"embargo_date":"2002-05-22 12:00:00","types":[183747],"research_groups":[3491],"collaboration":"","persons":[3631],"persons_data":"[{\"personId\":3631,\"personName\":\"Gernot Hutschenreiter\",\"organisationNames\":[]}]","clients":[],"subclients":[],"partners":[],"topics":[],"host_publication_title":"","host_publication_subtitle":"","place_of_publication":"","host_publication_editors":"[]","type_description":"","output_media":"","chapter":"","article_number":"","citations":"{\"apa\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_apa rendering_contributiontoperiodical rendering_apa rendering_contributiontoperiodical_apa\\\"><span>Hutschenreiter, G.<\\\/span> (2002). <span>Tax Incentives for Research and Development<\\\/span>. <span><em>Austrian Economic Quarterly<\\\/em><\\\/span>, <em>7<\\\/em>(2), 74-85. <a onclick=\\\"window.open(this.href, '_blank','noopener,noreferrer'); return false;\\\" href=\\\"https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/21992\\\" class=\\\"link\\\"><span>https:\\\/\\\/www.wifo.ac.at\\\/wwa\\\/pubid\\\/21992<\\\/span><\\\/a><\\\/div>\",\"vancouver\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_vancouver rendering_contributiontoperiodical rendering_vancouver rendering_contributiontoperiodical_vancouver\\\"><span>Hutschenreiter G<\\\/span>. <span class=\\\"title\\\"><span>Tax Incentives for Research and Development<\\\/span><\\\/span>. <span>Austrian Economic Quarterly<\\\/span>. 2002 May;7(2):74-85.<\\\/div>\",\"bibtex\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_bibtex rendering_contributiontoperiodical rendering_bibtex rendering_contributiontoperiodical_bibtex\\\"><div>@misc{d8c698f6addb403da63d927ac1725126,<\\\/div><div>  title    = \\\"Tax Incentives for Research and Development\\\",<\\\/div><div>  abstract = \\\"The majority of OECD countries provide support to R\\\\&amp;D both through direct subsidies and, increasingly, by means of tax incentives. For a considerable period of time, Austria has been offering an instrument of fiscal support to R\\\\&amp;D \u2013 the R\\\\&amp;D tax allowance \u2013 that is rather generous by international standards. However, the R\\\\&amp;D tax allowance shows some weaknesses. The recent reform of fiscal aid for R\\\\&amp;D is designed to eliminate some of these weaknesses by additional measures (a new R\\\\&amp;D allowance for R\\\\&amp;D expenditure based on the OECD definition, an R\\\\&amp;D premium for firms that do not manage to make sufficient profit). This reform of tax incentives for R\\\\&amp;D does not leave any firm worse off than before. On the other hand, the system of incentives is becoming increasingly complex, which in turn raises the costs of administration and compliance by firms. Until now the actual use and effects of the R\\\\&amp;D tax allowance have not been very transparent and no evaluation has been presented so far. It is recommended to evaluate the new set of instruments according to international standards after they have been in use for three years.\\\",<\\\/div><div>  keywords = \\\"Research and Development; R\\\\&amp;D; Tax Incentives; Government Aid; Austria; Tax Incentives for Research and Development, Research and Development; R\\\\&amp;D; Tax Incentives; Government Aid; Austria; Tax Incentives for Research and Development\\\",<\\\/div><div>  author   = \\\"Gernot Hutschenreiter\\\",<\\\/div><div>  note     = \\\"R\\\\&amp;D Tax Incentives\\\",<\\\/div><div>  year     = \\\"2002\\\",<\\\/div><div>  month    = may,<\\\/div><div>  language = \\\"English\\\",<\\\/div><div>  volume   = \\\"7\\\",<\\\/div><div>  pages    = \\\"74--85\\\",<\\\/div><div>  journal  = \\\"Austrian Economic Quarterly\\\",<\\\/div><p>}<\\\/p><\\\/div>\",\"ris\":\"<div class=\\\"rendering rendering_researchoutput  rendering_researchoutput_ris rendering_contributiontoperiodical rendering_ris rendering_contributiontoperiodical_ris\\\"><p>TY  - GEN<\\\/p><p>T1  - Tax Incentives for Research and Development<\\\/p><p>AU  - Hutschenreiter, Gernot<\\\/p><p>N1  - R&amp;D Tax Incentives<\\\/p><p>PY  - 2002\\\/5<\\\/p><p>Y1  - 2002\\\/5<\\\/p><p>N2  - The majority of OECD countries provide support to R&amp;D both through direct subsidies and, increasingly, by means of tax incentives. For a considerable period of time, Austria has been offering an instrument of fiscal support to R&amp;D \u2013 the R&amp;D tax allowance \u2013 that is rather generous by international standards. However, the R&amp;D tax allowance shows some weaknesses. The recent reform of fiscal aid for R&amp;D is designed to eliminate some of these weaknesses by additional measures (a new R&amp;D allowance for R&amp;D expenditure based on the OECD definition, an R&amp;D premium for firms that do not manage to make sufficient profit). This reform of tax incentives for R&amp;D does not leave any firm worse off than before. On the other hand, the system of incentives is becoming increasingly complex, which in turn raises the costs of administration and compliance by firms. Until now the actual use and effects of the R&amp;D tax allowance have not been very transparent and no evaluation has been presented so far. It is recommended to evaluate the new set of instruments according to international standards after they have been in use for three years.<\\\/p><p>AB  - The majority of OECD countries provide support to R&amp;D both through direct subsidies and, increasingly, by means of tax incentives. For a considerable period of time, Austria has been offering an instrument of fiscal support to R&amp;D \u2013 the R&amp;D tax allowance \u2013 that is rather generous by international standards. However, the R&amp;D tax allowance shows some weaknesses. The recent reform of fiscal aid for R&amp;D is designed to eliminate some of these weaknesses by additional measures (a new R&amp;D allowance for R&amp;D expenditure based on the OECD definition, an R&amp;D premium for firms that do not manage to make sufficient profit). This reform of tax incentives for R&amp;D does not leave any firm worse off than before. On the other hand, the system of incentives is becoming increasingly complex, which in turn raises the costs of administration and compliance by firms. Until now the actual use and effects of the R&amp;D tax allowance have not been very transparent and no evaluation has been presented so far. It is recommended to evaluate the new set of instruments according to international standards after they have been in use for three years.<\\\/p><p>KW  - Research and Development; R&amp;D; Tax Incentives; Government Aid; Austria; Tax Incentives for Research and Development<\\\/p><p>KW  - Research and Development; R&amp;D; Tax Incentives; Government Aid; Austria; Tax Incentives for Research and Development<\\\/p><p>M3  - WIFO series<\\\/p><p>VL  - 7<\\\/p><p>SP  - 74<\\\/p><p>EP  - 85<\\\/p><p>JO  - Austrian Economic Quarterly<\\\/p><p>JF  - Austrian Economic Quarterly<\\\/p><p>ER  - <\\\/p><\\\/div>\"}","scientific_assistance":"[]","scientific_review":"[]","version":"","release_date":null,"expiration_date":null,"surveyor":"","research_assistance":"","edv":"","additional_info_de":"","additional_info_en":""},"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.0 (Yoast SEO v28.0) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Tax Incentives for Research and Development - WIFO<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.wifo.ac.at\/en\/publication\/106224\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tax Incentives for Research and Development\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.wifo.ac.at\/en\/publication\/106224\/\" \/>\n<meta property=\"og:site_name\" content=\"WIFO\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/WIFOat\/\" \/>\n<meta property=\"article:modified_time\" content=\"2026-02-17T15:25:04+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.wifo.ac.at\/wp-content\/uploads\/2024\/05\/WIFO-Gebaeude-FotoAlexanderMueller-www.alexandermueller.at-IMG_6326-Bearbeitet-1.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1920\" \/>\n\t<meta property=\"og:image:height\" content=\"1280\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:site\" content=\"@WIFOat\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\\\/\\\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/106224\\\/\",\"url\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/106224\\\/\",\"name\":\"Tax Incentives for Research and Development - WIFO\",\"isPartOf\":{\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/#website\"},\"datePublished\":\"2024-01-22T13:48:37+00:00\",\"dateModified\":\"2026-02-17T15:25:04+00:00\",\"breadcrumb\":{\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/106224\\\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/106224\\\/\"]}]},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/publication\\\/106224\\\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Startseite\",\"item\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Tax Incentives for Research and Development\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/#website\",\"url\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/\",\"name\":\"\u00d6sterreichisches Institut f\u00fcr Wirtschaftsforschung\",\"description\":\"\",\"publisher\":{\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/#organization\"},\"alternateName\":\"WIFO\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Organization\",\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/#organization\",\"name\":\"\u00d6sterreichisches Institut f\u00fcr Wirtschaftsforschung\",\"alternateName\":\"WIFO\",\"url\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/\",\"logo\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\",\"url\":\"https:\\\/\\\/www.wifo.ac.at\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/WIFO_kurz_rechts-2-1920x412.jpg\",\"contentUrl\":\"https:\\\/\\\/www.wifo.ac.at\\\/wp-content\\\/uploads\\\/2024\\\/05\\\/WIFO_kurz_rechts-2-1920x412.jpg\",\"width\":2000,\"height\":429,\"caption\":\"\u00d6sterreichisches Institut f\u00fcr Wirtschaftsforschung\"},\"image\":{\"@id\":\"https:\\\/\\\/www.wifo.ac.at\\\/en\\\/#\\\/schema\\\/logo\\\/image\\\/\"},\"sameAs\":[\"https:\\\/\\\/www.facebook.com\\\/WIFOat\\\/\",\"https:\\\/\\\/x.com\\\/WIFOat\",\"https:\\\/\\\/linkedin.com\\\/company\\\/wifoat\\\/\",\"https:\\\/\\\/www.youtube.com\\\/@WIFO_at\"],\"description\":\"Das WIFO, 1927 von Friedrich August von Hayek und Ludwig von Mises zur Konjunkturanalyse gegr\u00fcndet, ist heute das f\u00fchrende Institut f\u00fcr angewandte empirische Wirtschaftsforschung in \u00d6sterreich mit starkem Engagement auf europ\u00e4ischer Ebene.\",\"email\":\"office@wifo.ac.at\",\"telephone\":\"+43 1 798 26 01 \u2013 0\",\"legalName\":\"\u00d6sterreichisches Institut f\u00fcr Wirtschaftsforschung\",\"foundingDate\":\"1927-01-02\",\"numberOfEmployees\":{\"@type\":\"QuantitativeValue\",\"minValue\":\"51\",\"maxValue\":\"200\"},\"publishingPrinciples\":\"https:\\\/\\\/www.wifo.ac.at\\\/institut\\\/mission-und-strategie\\\/\",\"ownershipFundingInfo\":\"https:\\\/\\\/www.wifo.ac.at\\\/institut\\\/organisation\\\/\",\"actionableFeedbackPolicy\":\"https:\\\/\\\/www.wifo.ac.at\\\/aktuelles\\\/presse\\\/\",\"correctionsPolicy\":\"https:\\\/\\\/www.wifo.ac.at\\\/institut\\\/kontakt\\\/\",\"ethicsPolicy\":\"https:\\\/\\\/www.wifo.ac.at\\\/institut\\\/evidenzbasierung-transparenz-und-unabhaengigkeit\\\/\",\"diversityPolicy\":\"https:\\\/\\\/www.wifo.ac.at\\\/institut\\\/gleichstellung\\\/\",\"diversityStaffingReport\":\"https:\\\/\\\/www.wifo.ac.at\\\/institut\\\/gleichstellung\\\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Tax Incentives for Research and Development - WIFO","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.wifo.ac.at\/en\/publication\/106224\/","og_locale":"en_US","og_type":"article","og_title":"Tax Incentives for Research and Development","og_url":"https:\/\/www.wifo.ac.at\/en\/publication\/106224\/","og_site_name":"WIFO","article_publisher":"https:\/\/www.facebook.com\/WIFOat\/","article_modified_time":"2026-02-17T15:25:04+00:00","og_image":[{"width":1920,"height":1280,"url":"https:\/\/www.wifo.ac.at\/wp-content\/uploads\/2024\/05\/WIFO-Gebaeude-FotoAlexanderMueller-www.alexandermueller.at-IMG_6326-Bearbeitet-1.jpg","type":"image\/jpeg"}],"twitter_card":"summary_large_image","twitter_site":"@WIFOat","schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"https:\/\/www.wifo.ac.at\/en\/publication\/106224\/","url":"https:\/\/www.wifo.ac.at\/en\/publication\/106224\/","name":"Tax Incentives for Research and Development - WIFO","isPartOf":{"@id":"https:\/\/www.wifo.ac.at\/en\/#website"},"datePublished":"2024-01-22T13:48:37+00:00","dateModified":"2026-02-17T15:25:04+00:00","breadcrumb":{"@id":"https:\/\/www.wifo.ac.at\/en\/publication\/106224\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.wifo.ac.at\/en\/publication\/106224\/"]}]},{"@type":"BreadcrumbList","@id":"https:\/\/www.wifo.ac.at\/en\/publication\/106224\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Startseite","item":"https:\/\/www.wifo.ac.at\/en\/"},{"@type":"ListItem","position":2,"name":"Tax Incentives for Research and Development"}]},{"@type":"WebSite","@id":"https:\/\/www.wifo.ac.at\/en\/#website","url":"https:\/\/www.wifo.ac.at\/en\/","name":"\u00d6sterreichisches Institut f\u00fcr Wirtschaftsforschung","description":"","publisher":{"@id":"https:\/\/www.wifo.ac.at\/en\/#organization"},"alternateName":"WIFO","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.wifo.ac.at\/en\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Organization","@id":"https:\/\/www.wifo.ac.at\/en\/#organization","name":"\u00d6sterreichisches Institut f\u00fcr Wirtschaftsforschung","alternateName":"WIFO","url":"https:\/\/www.wifo.ac.at\/en\/","logo":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.wifo.ac.at\/en\/#\/schema\/logo\/image\/","url":"https:\/\/www.wifo.ac.at\/wp-content\/uploads\/2024\/05\/WIFO_kurz_rechts-2-1920x412.jpg","contentUrl":"https:\/\/www.wifo.ac.at\/wp-content\/uploads\/2024\/05\/WIFO_kurz_rechts-2-1920x412.jpg","width":2000,"height":429,"caption":"\u00d6sterreichisches Institut f\u00fcr Wirtschaftsforschung"},"image":{"@id":"https:\/\/www.wifo.ac.at\/en\/#\/schema\/logo\/image\/"},"sameAs":["https:\/\/www.facebook.com\/WIFOat\/","https:\/\/x.com\/WIFOat","https:\/\/linkedin.com\/company\/wifoat\/","https:\/\/www.youtube.com\/@WIFO_at"],"description":"Das WIFO, 1927 von Friedrich August von Hayek und Ludwig von Mises zur Konjunkturanalyse gegr\u00fcndet, ist heute das f\u00fchrende Institut f\u00fcr angewandte empirische Wirtschaftsforschung in \u00d6sterreich mit starkem Engagement auf europ\u00e4ischer Ebene.","email":"office@wifo.ac.at","telephone":"+43 1 798 26 01 \u2013 0","legalName":"\u00d6sterreichisches Institut f\u00fcr Wirtschaftsforschung","foundingDate":"1927-01-02","numberOfEmployees":{"@type":"QuantitativeValue","minValue":"51","maxValue":"200"},"publishingPrinciples":"https:\/\/www.wifo.ac.at\/institut\/mission-und-strategie\/","ownershipFundingInfo":"https:\/\/www.wifo.ac.at\/institut\/organisation\/","actionableFeedbackPolicy":"https:\/\/www.wifo.ac.at\/aktuelles\/presse\/","correctionsPolicy":"https:\/\/www.wifo.ac.at\/institut\/kontakt\/","ethicsPolicy":"https:\/\/www.wifo.ac.at\/institut\/evidenzbasierung-transparenz-und-unabhaengigkeit\/","diversityPolicy":"https:\/\/www.wifo.ac.at\/institut\/gleichstellung\/","diversityStaffingReport":"https:\/\/www.wifo.ac.at\/institut\/gleichstellung\/"}]}},"_links":{"self":[{"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/publication\/106224","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/publication"}],"about":[{"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/types\/publication"}],"version-history":[{"count":2,"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/publication\/106224\/revisions"}],"predecessor-version":[{"id":314396,"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/publication\/106224\/revisions\/314396"}],"acf:post":[{"embeddable":true,"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/person\/3631"},{"embeddable":true,"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/research_group\/3491"},{"embeddable":true,"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/publication_type\/183747"}],"wp:attachment":[{"href":"https:\/\/www.wifo.ac.at\/en\/wp-json\/wp\/v2\/media?parent=106224"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}