The relationship between innovation and fiscal policy (reality and challenges). font size 16, bold, centered.

Abstract

The relationship between innovation and fiscal policy is closely intertwined, with each significantly impacting the other. Fiscal policy acts as a supporter of innovation. Governments can use fiscal policy to stimulate innovation by providing tax incentives to companies that invest in research and development. Fiscal policy can also support the establishment of business incubators and technology centers that provide an environment conducive to innovation. This contributes to the creation of new industries and job opportunities, increasing government tax revenues and helping solve economic and social problems, such as climate change and healthcare. Fiscal policy can play a crucial role in supporting innovation, and innovation can be a powerful driver of economic growth. However, governments must strike a balance between supporting innovation and maintaining fiscal stability