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There is a wide consensus that research and development (R&D) contribute to innovation and economic competitiveness, and some countries use the tax system to encourage industry to increase the amount of R&D it supports. In the UK, there is continued debate how far such measures are effective in increasing industrial R&D, and creating more wealth.

This POSTnote summarises the current debate and recent academic findings on the efficacy of fiscal measures to encourage industrial R&D.


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