Tax credits are an extremely effective tool of government research promotion. They are easy to administer and they support research regardless of a company’s current profit situation. In addition, tax credits have a market-oriented and broad impact.

Three-quarters of all OECD countries and half of the EU member states have now introduced a form of tax-based promotion for research and development, making the tax-based promotion of research an important location factor. Introducing such promotion in Germany would first of all bring the country back up to international standard. Research-based companies of all sizes should benefit from such promotion.

Scientific studies back the introduction of the tax-based promotion of research: “One euro of promotion leads to one euro of additional spending.” Bayer has committed itself to reinvesting every euro received in tax-based research promotion into research.