| Relevance/rationale of the indicator (resp. why the indicator was chosen to measure the target and how it is suitable for these purposes) |
Public support for innovative activities is mainly linked to support for research and development. It plays a significant role in stimulating businesses to innovate. Indirect public support for R&D as an instrument of public support for R&D in private enterprises is currently widely used in most developed countries of the world. This type of public support should stimulate the research, development and innovation activity of companies through the possibility of its widespread use (i.e. all companies can use it without distinction), which does not disturb the competitive environment. Thanks to the fact that indirect R&D support is not selective and does not stimulate R&D only in certain areas, there is no rigid market allocation of R&D investments. Enterprises can conduct R&D activities in the areas they have chosen, so as to bring them the most efficient allocation of their resources in the future. Last but not least, providing indirect support is administratively less demanding than direct support. In addition, using indirect R&D support can prevent possible subjective influences and interests that could play a significant role in the provision of direct R&D support. |
| Target value of the indicator and its evaluation |
No target value has been set. |
| Definition |
Indirect government support for research and development tracks Government Tax Relief for R&D (GTARD) statistic. In the Czech Republic, the GTARD indicator includes the applied deduction of expenses for the implementation of R&D projects from corporate and natural person income taxes. Data on indirect R&D support have been monitored by statistics since 2007. The administrative source of data is tax returns. Statistics are monitored only for legal entities (enterprises) in institutional sectors ISEKTOR 11 and 12. Indirect R&D support (GTARD indicator) is calculated based on the following formula: Indirect R&D support = applied R&D deduction from the tax base x tax rate. |
| Measuring unit |
Million CZK, % |
| Indicator disaggregation |
Breakdown by:
Ownership of enterprise
Enterprise size group (employees)
Industry (CZ-NACE section, division)
Region (CZ-NUTS 3) |
| Reference period (resp. the period to which the indicator relates) |
Year |
| Related geographical area |
CZ (NUTS 0), region (NUTS 3) |
| Comment |
The amount of R&D tax support in the period 2010 to 2019 gradually increased from 1.3 billion CZK in 2010 to 2.7 billion CZK in 2019. In 2020, the amount of R&D tax support fell to 2.1 billion CZK. |
