Sir, Professor Reg Austin (letter, June 9) makes some interesting points. There is a lot more the Government could do to foster wealth-creating research and development. Whilst the R&D tax credits are a very useful contribution, when a grant hasn’t been obtained, the credit is retrospective and doesn’t pay the bills as they arise. It would help enormously if the grant system itself was made easier, quicker, and preferably more generous.
On the accounting treatment, experience has shown that the current approach is the lesser of two evils. It was a response to corporate failures in the 1970s, where accumulated R&D had to be suddenly written off when developments didn’t reach the market.
Yours,
CHRIS CHALLIS,
(Chartered accountant),
21 Broadway, Maidenhead SL6 1NJ.
June 10.
From Mr Nick Temple
Advertisement
Sir, Professor Austin correctly points out the need for a change in culture in the field of research and develop- ment.
The Global Ideas Bank, an online “suggestion box”, recently received the proposal that a team (consisting of students, pensioners and those between jobs) with expertise in a particular area be paid a small fee by a business to do R&D on a company product or invention. If they came up with a successful prototype then the business would pay them a success fee, plus royalties if the business were able to bring the idea to the market.
In this way, the project could be sustained, and the outcomes (employment opportunities and skills development for young graduates, a satisfying retirement for engineers, a low-cost way of testing new ideas for business) surely make this worth pursuing.
With best wishes,
NICK TEMPLE,
(Director),
The Global Ideas Bank,
6 Blackstock Mews,
Blackstock Road,
London N4 2BT.
ideas@globalideasbank.org
June 9.