IP News Bites | Incentives for R&D in Chile
June 23rd, 2012 by Danny G. Pérez y Soto - B&R Research
Fiscal credit to promote Research and Development in Chile
According to WIPO Magazine, Chile is taking huge steps in promoting Research and Development –R&D- in its territory. This is part of an effort to overcome an innovation deficit and to promote both public and private research departments from Chile and from foreign sources looking to invest in the Chilean market.
There is a clear and proven correlation between investments in R&D, intellectual and industrial innovation and economic growth. According to the Interamerican Development Bank, R&D is a key area to promote economic and social progress in the region, and statistics from the World Bank indicate a low level of investment in R&D as a percentage of GPD in Latin American Countries. Studies about this issue may be found here and here.
Law 20.241, as recently modified by the Chilean congress, aims at increasing the amount of fiscal credit for national and foreign corporations in their R&D investments, and to reduce the limitations to get such credit.