Greater Coachella Valley Chamber of Commerce
  • Join the Chamber
  • Business Directory
  • GCVCC
    • Member to Member Referral Program
    • Articles Of Incorporation
    • GCVCC Board of Directors
    • Ambassador Application
    • Staff
  • Events
    • Sponsorship Opportunities
    • Ribbon Cutting Request
  • Legislative Action
    • Legislative Action
    • Elected Leaders
    • GCV PAC
  • Resources & Publications
    • Employer Connect Program
    • Get Your Business Known
    • Business Support
    • The Gem
    • Publications
    • Ambassador Application
  • News
    • Community
    • City
    • Business
    • Non-Profit news
    • Arts & Entertainment
    • Legislative Advocacy Updates
    • E-Newsletter Signup
    • Submit Your News
  • Chambers
    • Cathedral City Chamber
    • Coachella Chamber
    • Desert Hot Springs Chamber
    • Indian Wells Business District
    • Indio Chamber of Commerce
    • La Quinta Chamber
    • Unincorporated Riverside County
  • Member Login
  • Join
  • Business Directory
  • GCVCC
    • Member to Member Referral Program
    • Article of Incorporation
    • GCVCC Board of Directors
    • Ambassador Application
    • Staff
  • Events
    • Events & Registration
    • Ribbon Cutting Request
  • Legislative Action
    • Legislative Action
    • Elected Leaders
    • GCV PAC
  • Resources & Publications
    • Employer Connect Program
    • Get Your Business Known
    • Business Support
    • The GEM
    • GCV Voice of Business
    • Advertise In Our Publications
  • News
    • E-Newsletter Signup
    • Submit your news
  • Chambers
    • Cathedral City Chamber
    • Coachella Chamber
    • Desert Hot Springs Chamber
    • Indio Chamber of Commerce
    • La Quinta Chamber
    • Indian Wells Business District
    • Unincorporated Riverside County

News

Uncertainty Hurts R&D Investment That’s Key to State Competitiveness

May 27, 2021

News from: CalChamber

California’s innovation-based economy pays economic dividends not only in our traditional technology hubs, but in every region of the state and in a wide variety of jobs. Key to the state’s competitive advantage in innovation is a robust and historically stable tax incentive known as the research and development (R&D) tax credit.

A year ago, state leaders anticipated a deep, pandemic-induced recession that would erode state revenues. Among other budget-saving actions, lawmakers limited the use of tax credits, including the R&D credit, to a maximum of $5 million a year per company. This action disrupted many firms’ financial planning in the short term.

With recovery driven by technology and business services, and a massive, unexpected boost in state revenues, the Legislature should be revisiting its earlier decision to suspend tax credits. With this in mind, the California Chamber of Commerce teamed with the Milken Institute to assess the economic and workforce effects of R&D-related private investments.

Long-Term Outlook

One of their key findings is that R&D policy requires a long-term outlook. Companies favor a more predictable policy environment; changes to the tax credit in 2020 were approved during a period of significant uncertainty, and the changes themselves created even more uncertainty.

Research spending relies on longer-term planning, so any activities relocated outside California may take longer to return (if they return at all).

Other Findings

Milken Institute researchers also found:

  • California’s level of industry R&D spending is No. 1 nationwide by a wide margin.
  • Evidence that incentives have been a key component of supporting business research and development.
  • R&D spending has supported high-tech business formation and high-wage job creation, such as Silicon Valley, but the state also has substantial assets in non-tech sectors such as life sciences, transportation, entertainment, design and machinery.
  • The concentration of jobs reliant on or connected to R&D in California for these industries outpaces the nation.
  • Innovation-connected jobs appear throughout California. For example, a high concentration of engineering in Bakersfield, computers and math in the Inland Empire, design and media in Los Angeles, and life sciences in San Diego.
  • Many R&D-supported occupations are among the fastest-growing job categories in the California, and supports higher wages among these fast-growing jobs
  • Spending also has generated job creation in occupations that require fewer credentials as well as in non-tech-intensive industries.

More Information

A summary of the Milken Institute’s research can be found here. A webinar co-hosted by CalChamber and the Milken Institute on this subject can be viewed at https://cfce.calchamber.com/.

Upcoming Events

Aug 20
11:30 am - 12:00 pm

Lunch Club | Big Rock Pub

Aug 20
4:30 pm - 6:00 pm

Social Hour | Agua Caliente Casino Cathedral City – Café One Eleven

Sep 4
11:00 am - 12:00 pm

Ribbon Cutting | Yun Therapy

Sep 8
5:30 pm - 8:00 pm

Ribbon Cutting | Grandparents Love

Sep 10
5:00 pm - 7:00 pm

GCVCC Season Kickoff Mixer

View Calendar
760.347.0676
760.347.6069
info@gcvcc.org

Locations

Coachella

1515 6TH ST.
Coachella, CA 92236

M – TH | 8:30am – 4:30pm

Indio

45-149 Smurr St., Ste. A
Indio, CA 92201

M – F | 8:30am – 4:30pm

  • Contact Us
  • Terms of Use
© Greater Coachella Valley Chamber of Commerce. All rights reserved.

Sign up for the latest news and updates from GCVCC.

  • This field is for validation purposes and should be left unchanged.

zh-CN Chinese (Simplified)nl Dutchen Englishfr Frenchde Germanit Italianpt Portugueseru Russianes Spanish
en English

Notifications