A group of R&D-intensive companies has formed an alliance to improve conditions of R&D-activities in Denmark. The companies represent a wide range of sectors and span from world leading global companies to SME’s.
Client challenges
In many other countries, governments have implemented specific policies to support private investments in R&D. This has not been the case in Denmark. To secure a level playing field the Alliance wanted the government to adopt a corporation tax relief on R&D expenditures.
Our approach and findings
We assisted the Alliance in building the case for a corporation tax relief on R&D expenditures. Our work included several activities:
- Benchmarking of Danish framework conditions in an international context
- Developing socio-economic arguments to influence stakeholders such as politicians and representatives of influential business organizations
- Modelling the economic effects of the suggested scheme on GDP and employment
- Assessing the loss of revenue for the state controlling for behavioural effects
- Presenting the case to politicians, government officials and other stakeholders
- Contributions to PR material (newspaper chronicles, company meetings with politicians)
Benefits achieved for our client
We assisted the alliance to put the R&D tax scheme on the agenda. Our advice and findings have been employed to form the public opinion, to gain support from business organization and to influence government officials and politicians. In the end, the tax scheme was adopted.
"At Lundbeck, over a long period of time, we have had valuable collaboration with HBS Economics, who have a keen eye for combining economic analysis with political insight. The consultants at HBS Economics have a good business sense, are easy to work with and exhibit a formidable ability to deliver with a short turnaround time."
- Brigitte Bejder Welm, Director of Government Affairs