R&D tax credits are incentives provided by governments to encourage companies to invest in research and development activities. These credits reduce a company's tax liability, making it more financially viable to innovate and create new products or processes. This incentivization is crucial for economic growth and competitiveness, particularly in a global context where nations strive to enhance their technological advancements and foster innovation.
congrats on reading the definition of R&D Tax Credits. now let's actually learn it.