Jaramillo Salazar, Hernan; Pombo, Carlos; Gallego Acevedo, Juan Miguel
Economists have shown that investments in science and technology (S&T) have an important impact on countty's economic growth and productivity gains. Nowadays there is no doubt of the importante in providing publicfundingfor S&T activities. Public policies have been oriented to provide incentives forprivate spending in Se 2T as a mechanism to enhance productive fficieng. In this regard, fiscal incentives play a crucial role to channel ptivate efforts in research and development (R&D) prqjects. International expetience based on the OECD case, shows that 10% decrease in the User Cost of Capital due to fiscal incentives will increase 1% R&D spending in the short run and might reach a 10% increase in the long run.