March 31, 2016/IMF
Against a backdrop of mediocre medium-term growth prospects, identifying policies that could lift productivity growth by promoting innovation is critical. Fiscal policy can play an important role in stimulating innovation through its effects on research and development (R&D), entrepreneurship, and technology transfer.
New analysis in this chapter identifies areas in which fiscal policy should do more and others where it should do better or less. The key messages are the following:
