Staring in 2022, a provision in the 2017 Tax Cuts and Jobs Act will require companies to start amortizing their R&D investments over five years instead of expensing them in the same year they incur the costs. Congress should repeal the rule before it takes effect. Otherwise, companies will do less research in the United States, jobs will be lost, and U.S. competitiveness will suffer.
Science and R&D
March 15, 2021
Fact of the Week: Portuguese R&D Tax Incentives Spurred Investments in Productivity-Boosting Assets by 0.8 to 2.4 Percent Of Firms’ Total Assets
Public support for R&D is critical to bridge the gap in incentivizing technological progress. Three Portuguese economists examined the investment impact of tax incentives for “intangible investments,” another term for non-physical investments that increase productivity, such as human capital, software, and innovation.
February 15, 2021
Fact of the Week: Increasing Research, Education, and University Slots With a 0.5 Percent Subsidy Could Increase Long-Run Growth Between 1 and 4 Percentage Points
On average, a 0.5 percent increase in research, education funding, and university spots increases long-run growth by 2.6, 4.7, and 1.3 percentage points, respectively.
February 1, 2021
There is a growing sense something is amiss with the U.S. innovation system. It’s time for a vigorous initiative to restore belief in innovation’s potential as a force for social and economic progress, for the benefit of America and the world.
January 25, 2021
When it comes to federal investment in science, the free-marketers’ argument that the private sector can and will do most of the heavy lifting and that government can let federal support for R&D stagnate or even shrink is mistaken.
January 11, 2021
Fact of the Week: A 1 Percent Increase in Mid-term Military R&D Funding Stimulates Increases Privately Financed R&D Expenditures by 0.11 to 0.14 Percent
Defense R&D spending can help to relax credit constraints on innovate sectors, increase profitability of spin-off projects, and foster entrepreneurship.
January 4, 2021
The Year Ahead: Twenty-Four Ways Congress and the Biden Administration Can Advance Good Tech Policy in 2021
If Washington wants to show voters that government is doing something more than simply saying no or being ideologically dug in, then lawmakers and the administration should work to advance a set of actionable technology policy measures that would grow the U.S. economy.
December 16, 2020
Congress should at least double the NSF Graduate Research Fellowship program (currently funded at $285 million), but limit the additional funds only for true STEM degrees, rather than fields like psychology, economics, and sociology, which NSF wrongly defines as STEM.
December 16, 2020
ITIF hosted a discussion on this critical issue. The event featured a keynote address by Simon Tripp of TEConomy Partners, author of the new report “Response and Resilience: Lessons Learned from Global Life Sciences Ecosystems in the COVID-19 Pandemic,” followed by an expert panel of respondents.
November 30, 2020
Fact of the Week: The EU has slashed funding for its Horizon Europe scientific research initiative by 14 percent
Research spending unfortunately is seen by many as an “add-on” rather than an essential economic driver, so it is not prioritized in times of crisis such as the pandemic, even though research is crucial to developing a COVID vaccine.
November 23, 2020
It has become abundantly clear that the United States faces a robust economic and military competitor in China.