Implied tax subsidy rates on R&D expenditures in European Union (27 countries from 01/02/2020)
European Union (27 countries from 01/02/2020): Implied tax subsidy rates on R&D expenditures was 0.14 Index in 2025. ▲ Rising
Implied tax subsidy rates on R&D expenditures in European Union (27 countries from 01/02/2020), 2000–2025
Source: Organisation for Economic Co-operation and Development. Measured in Index.
Analysis
In 2025, implied tax subsidy rates on r&d expenditures in European Union (27 countries from 01/02/2020) stood at 0.14 Index. That is the highest value across all 26 years on record.
The figure is up 27.3% over ten years.
Over the whole period, implied tax subsidy rates on r&d expenditures in European Union (27 countries from 01/02/2020) peaked at 0.14 Index in 2020 and was at its lowest, 0.02 Index, in 2000.
The long-run direction has been consistently rising across the 26 years of available data.
Implied tax subsidy rates on R&D expenditures in European Union (27 countries from 01/02/2020), year by year
| Year | Index | Change |
|---|---|---|
| 2000 | 0.02 Index | — |
| 2001 | 0.03 Index | +50.0% |
| 2002 | 0.03 Index | +0.0% |
| 2003 | 0.04 Index | +33.3% |
| 2004 | 0.04 Index | +0.0% |
| 2005 | 0.05 Index | +25.0% |
| 2006 | 0.06 Index | +20.0% |
| 2007 | 0.06 Index | +0.0% |
| 2008 | 0.08 Index | +33.3% |
| 2009 | 0.09 Index | +12.5% |
| 2010 | 0.09 Index | +0.0% |
| 2011 | 0.09 Index | +0.0% |
| 2012 | 0.09 Index | +0.0% |
| 2013 | 0.11 Index | +22.2% |
| 2014 | 0.12 Index | +9.1% |
| 2015 | 0.11 Index | -8.3% |
| 2016 | 0.12 Index | +9.1% |
| 2017 | 0.12 Index | +0.0% |
| 2018 | 0.12 Index | +0.0% |
| 2019 | 0.11 Index | -8.3% |
| 2020 | 0.14 Index | +27.3% |
| 2021 | 0.14 Index | +0.0% |
| 2022 | 0.13 Index | -7.1% |
| 2023 | 0.13 Index | +0.0% |
| 2024 | 0.14 Index | +7.7% |
| 2025 | 0.14 Index | +0.0% |
Averages by decade
| Decade | Average | Lowest | Highest | Years |
|---|---|---|---|---|
| 2000s | 0.05 Index | 0.02 Index | 0.09 Index | 10 |
| 2010s | 0.108 Index | 0.09 Index | 0.12 Index | 10 |
| 2020s | 0.1367 Index | 0.13 Index | 0.14 Index | 6 |
Countries ranked near European Union (27 countries from 01/02/2020)
More economy & growth data for European Union (27 countries from 01/02/2020)
- Annual Purchasing Power Parities and exchange rates — Purchasing 0.6316 National currency per US dollar (2025)
- National CPI, Growth rate over one year, All countries, Food and 3.3 Percent per annum (2025)
- Annual national net lending/net borrowing, US $, current prices 695,099 US dollars, PPP converted (2024)
- National CPI, Growth rate over one year, All countries, Energy -0.6 Percent per annum (2025)
- National CPI, Growth rate over one year, All countries, All items 2.6 Percent per annum (2025)
- Annual net national income per capita, US $, current prices, current 51,840 US dollars per person, PPP converted (2024)
- Annual national disposable income, US $, volume, constant PPPs 17.94 million US dollars, PPP converted (2024)
- Annual net national income per capita, US $, volume, constant PPPs 40,078 US dollars per person, PPP converted (2024)
- National CPI, Growth rate over one year, All countries, Food and 3.2 Percent per annum (2025)
- National CPI, Growth rate over one year, All countries, All items 2.6 Percent per annum (2025)
All data for European Union (27 countries from 01/02/2020) →
Frequently asked questions
- What is implied tax subsidy rates on r&d expenditures in European Union (27 countries from 01/02/2020)?
- Implied tax subsidy rates on r&d expenditures in European Union (27 countries from 01/02/2020) was 0.14 Index in 2025, according to Organisation for Economic Co-operation and Development.
- What is the highest implied tax subsidy rates on r&d expenditures recorded in European Union (27 countries from 01/02/2020)?
- The highest recorded value was 0.14 Index in 2020.
- What is the lowest implied tax subsidy rates on r&d expenditures recorded in European Union (27 countries from 01/02/2020)?
- The lowest recorded value was 0.02 Index in 2000.
- How does European Union (27 countries from 01/02/2020) rank for implied tax subsidy rates on r&d expenditures?
- European Union (27 countries from 01/02/2020) ranks 1st out of 2 regions with data for 2025.
- Is implied tax subsidy rates on r&d expenditures rising or falling in European Union (27 countries from 01/02/2020)?
- Over the last ten years it is up 27.3%. The long-run trend across the full record is rising.
- Where does this European Union (27 countries from 01/02/2020) data come from?
- The figures come from Organisation for Economic Co-operation and Development, published as part of Implied tax subsidy rates on R&D expenditures. Statizoid updates them automatically from the source API.
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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.