In recent years, use of the research and development (R&D) tax incentive has grown strongly. Between 2023 and 2024 alone, 43% of the total allocated since 2012 was certified, equivalent to CLP 395 billion. This progress reflects a more effective outreach strategy and a growing awareness of the importance of innovation. Even so, national R&D spending still lags behind: in 2024 it reached just 0.39% of GDP, far from the OECD average of 2.72%.
Boosting R&D in companies is key to generating added value, increasing competitiveness and strengthening ties with universities and technology centers. The renewal of the R&D Law through 2035 offers a political opportunity to consolidate a sustained innovation strategy. But greater commitment is still needed from the private sector, which today funds only 42% of R&D spending, compared with 60% in developed countries. Closing that gap will make it possible to transform the productive matrix and build an economy based on science and technological innovation.
Alonso Ureta
Senior Portfolio Manager
Read the original letter at https://portalinnova.cl/ley-id-impulsando-una-economia-del-conocimiento/
