India leads the world in R&D tax generosity for both small- and medium-sized enterprises (SMEs).

India leads the world in R&D tax generosity for both small- and medium-sized enterprises (SMEs) and large firms by allowing a 200 percent super deduction for in-house R&D expenditures, a super deduction of 125 percent to 200 percent for payments made to contractors carrying out R&D in India, and a 100 percent deduction for R&D expenses that do not otherwise qualify for the other deductions. The United States, meanwhile, has allowed to the R&D tax credit expire with uncertain chances for renewal. It makes no sense to put aside one of the best tools there is to compete in the innovation economy.