A 2007 report on how use of the R&D Tax Concession impacts on firm behaviour. It looks at the concept of 'behavioural additionality' or the difference in firm behaviour resulting from a government intervention.
The report identifies that firms make long-term changes in company collaboration, R&D management and commercialisation as a consequence of using the R&D Tax Concession.
Findings indicate the importance of the R&D Tax Concession for building innovative firms in Australia. It contributes to competence building, networking and commercialisation, all of which are characteristics of innovating firms.
Overall, the report found that the R&D Tax Concession impacts positively on firms' R&D budgets and speeds up the rate of R&D activity.
This report is believed to be the first report in the world to investigate the behavioural impact on the firm of an R&D tax incentive using the OECD 'behavioural additionality' methodology.
Other findings in terms of changes within firms include:
a better understanding of the benefits of R&D;
a higher commitment to R&D;
improved management of R&D;
improved business strategy in the firm; and
increased collaboration with universities