Before we get too excited, how much of that R&D funding is on which color of button makes you most likely to click "Buy Now"?
this post was submitted on 16 Jan 2024
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Economics
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You're not wrong, but R+D is mostly another operating expense which lowers net income. Net income is what's taxed. Companies could spend this money on building another office or salaries for sales staff instead which would both lower net income.
Some jurisdictions may have special tax considerations for narrowly defined R+D work, but it's mostly companies spending money to try and make more money. Sometimes that pans out and other times it doesn't.
R and D at corporate