A recent report by the OECD misses the forest for the trees, providing cautionary advice about R&D credits for policymakers while downplaying their effectiveness and ignoring important rationale behind them. While smart policy design is always welcome, most of the OECD’s worries are overstated or simply nonsensical. The R&D credit continues to provide a critical incentive for American innovation and should be expanded considerably.
Science and R&D
University Research Funding: Still Lagging and Showing No Signs of Improvement
It will come as a surprise to many that America is no longer, and nowhere near, the lead nation in terms of funding university research. In fact, of 39 nations, the U.S. ranks just 24th in government funding and 27th in business funding as a share of GDP. In fact, the leading seven nations invest more than double the U.S. level. The result over time will be a continued loss of U.S. competitiveness.