Sum​mary

Company ownership and financial structures are important influencers of company R&D spend since they determine overall business strategy and the role of R&D in the company.

Shareholders can sometimes act as a barrier to R&D investment if they are focused on short-term returns or have a low risk appetite.

This is a complex issue without a simple solution. Government, industry and the investment community should work together to explore how to further incentivise strategic investment and ownership of technology-based companies that is focused on long-term company growth, including through R&D investment, rather than short-term returns.

 

Explainer: Ownership and financial structures (148.00 KB)