4/8  BIS central bankers' speeches  And tax breaks for research can also help to create an environment conducive to innovation. The Federal Government has now addressed this issue specifically by putting forward draft legislation.
As the legislative process rolls on, it will of course be vital that the rules are not worded in a way that is overly detailed, not least in order to keep the effort required of firms and tax administrations within manageable parameters. On the other hand, the “free rider problem”, amongst other issues, needs to be avoided.