Research & Development Investment

Research and development ("R&D") by Indiana's business, academic and public sectors is critical to innovation, new investment and our State's future economic growth.  Wherever you find dynamic economic progress, you will almost always find it is a product of vigorous R&D activity by a combination of private enterprise and universities.

Indiana has made strong strides in recent years to increase R&D activity in our state.  However, other states have continued to increase their incentives for technology‑intensive R&D activity as well, and Indiana must seek innovative incentives to maintain our competitive posture.

Research & Development Investment Policy Recommendations:

• Restructure the Patent Income Exemption to make it more attractive to small businesses. 
• Allow businesses to sell unused R&D tax credits to other users, increasing the availability of capital for further R&D activity and other entrepreneurial business investment.
• Appropriate nearly $2 billion for technology innovation to support public or private universities, research organizations or other approved research collaborations whose research is commercialized in Indiana.  The additional funding would help attract the best staff, faculty or students to support R&D activities.  Subsequently, new technologies would transfer to the private sector, which in turn would create new jobs.