RT @JoshBBornstein: 65 year study confirms my research: Tax cuts don't lead to economic growth. Ping @Nick_Xenophon , @BCAcomau https://t.…
19/08/2017 9:13 PM
RT @attn: .@Schwarzenegger has a blunt message for Nazis. https://t.co/HAbnejahtl
18/08/2017 9:38 PM
RT @PositiveMoneyUK: Make Monetary Policy Fair: It's time to explore alternatives to 'conventional' QE. https://t.co/m6CFVojm7w #QEforPeopl…
18/08/2017 9:35 PM
@deirdrekent To be expected when income is taxed and capital gain not...
16/08/2017 9:22 PM
@bernardchickey @YourHomeLoanNZ Add ring fencing loses / deal to negative gearing and we might see some balance develop in the economy.
16/08/2017 7:36 PM
@bernardchickey Or take the job and do the right thing anyway - the RBNZ is "independent" after all...
16/08/2017 7:34 PM
@bernardchickey Not take the job because you would know you would be on a hiding to nothing. The link between earn… https://t.co/nxPRuAaT6t
16/08/2017 7:31 PM
RT @theyearofelan: Sure, the cancer was aggressive. But the chemotherapy was also very aggressive. There was aggression on both sides
16/08/2017 7:27 PM
@bernardchickey DTI+LVR+OCR all needed for financial stability & inflation.RBNZ can then push back on dumb policy f… https://t.co/CqXISZUHGq
16/08/2017 7:27 PM
@SelwynPellett Farming capital gains makes it hard to pay current expenses hence the need to externalise costs. Th… https://t.co/J1yevZAHft
14/08/2017 5:46 PM
Recent Post Comments
I am sorry but this comment section has been disabled due to spam. My contact details are easy to find, please contact me if you want to comment or discuss anything on this blog.

Print-friendly
25
MAY 11

Misunderstanding R&D Incentives




A recent editorial in the Herald demonstrates a narrow and misinformed view of what research and development really means. See:

http://www.nzherald.co.nz/opinion/news/article.cfm?c_id=466&objectid=10727600

The context specific nature of the endeavour to find or apply new and different things is often overlooked by those only peripherally involved with the activity.
 

Centralised R&D suits systems that have common needs and applications, agriculture for example; where R&D needs and applications are fundamentally desperate another approach – say R&D tax credits – is necessary.  Other jurisdictions seem to understand this basic point.  See:

http://www.johnwalley.co.nz/153-statistics_maybe_lies_maybe_no.aspx

Given that intervention in this domain the competitive dimension is clear, firms in Australia (say) get more support from their government for this specific activity they sit in a better competitive position in all markets.  Conversely without it NZ firms are at a competitive disadvantage.  The link has much to say in this regard.
 


tags: r&d tax credits, herald editorial, competitive advantage
I am sorry but this comment section has been disabled due to spam. My contact details are easy to find, please contact me if you want to comment or discuss anything on this blog.