Research and Development and Innovation Promotion

The commentary of the article is oriented on the definition of the research, development and innovations among which the author identifies interfaces. The borderlines among them evidently are hard to draw. The article deals with analysis of the factors influencing innovation performance in new EU member countries, particularly in the Czech Republic. Regulatory provisions of national innovation system in the EU member countries make use of direct and indirect forms of innovation promotion. Indirect promotion means supporting not only innovation, but also supporting research and development, which is preceding innovation output. In the EU member countries different forms of indirect promotion are applied. In the innovating firms the indirect promotion has usually influence on the income tax. The commentary presents advantages and disadvantages of the indirect promotion of innovation. In the Czech Republic the indirect promotion of the research and development was introduced in the year 2005 by the tax discount of the expenses used in the realization of the research and development projects.