United Kingdom vs United States: Implied tax subsidy rates on R&D expenditures
Implied tax subsidy rates on R&D expenditures over time
- United Kingdom
- United States
How they compare
United Kingdom currently reports 0.18 Index against 0.06 Index in United States, a difference of 0.12 Index.
That makes United Kingdom's figure about 3.0 times United States's.
The two have swapped places 1 time across 26 shared years of data; in 2000 it was United States ahead.
United Kingdom ranks 5th and United States ranks 7th of 12 countries.
United Kingdom has averaged higher in every one of the 3 decades both report.
Head to head by decade
| Decade | United Kingdom | United States | Difference | Ahead |
|---|---|---|---|---|
| 2000s | 0.064 Index | 0.058 Index | 0.006 Index | United Kingdom |
| 2010s | 0.092 Index | 0.052 Index | 0.04 Index | United Kingdom |
| 2020s | 0.15 Index | 0.04 Index | 0.11 Index | United Kingdom |
Averages of every year both report within each decade.
Frequently asked questions
- Which has higher implied tax subsidy rates on r&d expenditures, United Kingdom or United States?
- United Kingdom, at 0.18 Index against 0.06 Index in United States as of 2025.
- What is the difference in implied tax subsidy rates on r&d expenditures between United Kingdom and United States?
- 0.12 Index, with United Kingdom ahead.
- How many years of comparable data are there for United Kingdom and United States?
- 26 years are reported by both, from 2000 to 2025.
- How do United Kingdom and United States rank globally for implied tax subsidy rates on r&d expenditures?
- United Kingdom ranks 5th and United States ranks 7th of 12 countries.
- Where does this data come from?
- Organisation for Economic Co-operation and Development, published as Implied tax subsidy rates on R&D expenditures. Statizoid refreshes it automatically from the source and publishes the full history for both places.
Individual pages
About this data
The OECD R&D Tax Incentives database presents OECD time-series indicators of implied tax subsidy rates on R&D expenditures by firm size and profitability scenario for OECD member countries and other major economies, drawing on data collected in the OECD R&D tax incentives surveys since 2007. Implied R&D tax subsidy rates are defined as 1 minus the B-Index, a measure of the before-tax income needed by a “representative” firm to break even on one additional monetary unit of R&D outlay (Warda, 2001; OECD, 2023). The more generous the tax provisions for R&D, the lower the before-tax breakeven economic return required by firms and the higher the implied marginal R&D tax subsidy. The OECD time-series estimates of implied R&D tax subsidy rates is based on headline tax credit and allowance rates. Due to limited historical data availability, the estimates are not adjusted for provisions that bound the tax benefits received by firms (e.g. ceilings, thresholds). They therefore provide an upper bound for the marginal tax subsidy implied by R&D tax relief measures at central government level across countries over time. OECD (2019) provides a practical guide to using the OECD R&D Tax Incentives database, describing the R&D tax incentive time series data and highlighting their potential for internationally comparative work through descriptive indicators and econometric analysis.