Research and Development (R&D) Craftsmanship
The UK is urging a redefinition of Research and Development (R&D) to encompass innovation in the arts, humanities, and social sciences (AHSS), as argued in a recent research report. This shift could potentially make these sectors eligible for tax relief, a move that could stimulate growth in the creative industries.
Historically, R&D funding has been primarily allocated to economic sectors such as science, health, and heavy industry. However, this report challenges the traditional perception of R&D, highlighting its cross-disciplinary nature. The report, commissioned by the Creative Industries Council, details the results of a survey of employers in the UK's creative industries regarding migrant and skills needs.
The report, authored by Professor Hasan Bakhshi MBE, Director of Creative PEC, discusses the international trade in creative goods and services. It also makes recommendations to policymakers, businesses, and data collectors about better incentivizing R&D in creative industries organizations.
The call for an expanded R&D definition is not a new concept. Countries like Austria, Germany, Korea, and Norway have already adopted similar practices. Two notable examples are Canada and Japan, which offer funding and tax relief specifically aimed at innovation in the AHSS.
Canada, through the Social Sciences and Humanities Research Council (SSHRC), provides funding for research innovation in the social sciences and humanities. Japan, on the other hand, offers tax benefits and fellowship programs related to international cultural exchange and visual arts research.
In contrast, the US federal level has seen cuts and eliminations rather than new tax relief initiatives for the AHSS fields based on recent policy trends. Proposed budgets have included the elimination of major agencies that support arts, humanities, and social sciences research.
The Department for Business, Energy and Industrial Strategy (BEIS) has been suggested as a potential beneficiary of this expanded R&D definition, although the report does not explicitly state this recommendation.
The report is part of the PEC's Spotlight on R&D Week that ran from the 14th - 18th January. However, it does not explicitly state whether it is part of this event. The report also does not discuss the traditional definition of R&D or the need to update it to include innovation in the AHSS.
The UK's departure from the EU has affected the way British firms trade and work with European counterparts. This report comes at a crucial time, as the government has committed to increasing the amount of public money spent on research and development. The expansion of the R&D definition could potentially boost the UK's creative industries, contributing to economic growth and international competitiveness.
Sources:
- Art Daily
- The Guardian
- The Hill
- The Japan Foundation
- Social Sciences and Humanities Research Council
- The UK's push for a redefinition of Research and Development (R&D) includes innovations in arts, humanities, and social sciences (AHSS), potentially making these sectors eligible for tax relief.
- Historically, R&D funding has been allocated primarily to industries like science, health, and heavy industry, but this report challenges this notion with its cross-disciplinary perspective.
- The report, commissioned by the Creative Industries Council, recommends better incentivizing R&D in creative industries organizations and details migrant and skills needs within the UK's creative industries.
- Countries such as Austria, Germany, Korea, Norway, Canada, and Japan have already adopted a broadened definition of R&D, offering funding and tax relief for innovation in the AHSS.
- Notably, Canada, through the Social Sciences and Humanities Research Council (SSHRC), funds research innovation in the social sciences and humanities, while Japan offers tax benefits and fellowship programs related to cultural exchange and visual arts research.
- In contrast, the US federal level has seen cuts and eliminations of agencies supporting arts, humanities, and social sciences research, instead of new tax relief initiatives for AHSS fields.
- The Department for Business, Energy and Industrial Strategy (BEIS) has been proposed as a potential recipient of funds from the expanded R&D definition, although the report does not explicitly state this recommendation.
- As the UK prepares to trade independently after leaving the EU, the report's suggestions could boost the creative industries, contributing to economic growth and international competitiveness.
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