Federal support for research and development

Federal support for research and development

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This Congressional Budget Office (CBO) study, prepared at the request of the Ranking Member of the Senate Committee on the Budget, examines recent trends in federal support for research and development and the current state of knowledge about the economic effects of that support. Private businesses are the largest sponsors of research and development (RaD) in the United States; however, the federal government has long provided significant support for RaD activities to both supplement and encourage private efforts. The government finances research and development through spending and tax benefits that give businesses an incentive to increase their RaD spending. This study addresses questions such as whether the current level of spending is appropriate, what returns taxpayers receive for public investment in RaD, and whether funds are allocated to areas of inquiry and projects that will provide the highest return on that investment.--PrefaceSince it was instituted, the research and experimentation (Raamp;E) tax credit has been calculated in different ways. ... tax years 1984 to 1988, the fixed-base percentage is the ratio of total research spending to total gross receipts over that period.

Title:Federal support for research and development
Author: Sheila Marie Campbell, United States. Congressional Budget Office
Publisher: - 2007

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