Should NH invest more in research and development?

According to a recent federally funded report, New Hampshire significantly lags behind the rest of the nation in research and development by industry and universities.

Since the economic recovery in 2009, the report indicates research and development by industry has grown 17.8 percent nationally compared to 5.1 percent in New Hampshire. During this same period of time university R&D grew just 6.7 percent in New Hampshire in comparison to 16.2 percent nationwide.

One way that New Hampshire could potentially encourage investment in research and development is to raise the cap on the state's research and development tax credit. Currently, state funds for the credit are capped at a total of $2 million per year. Applications for the credit routinely greatly exceed that amount, meaning that applicants receive less credit than they would potentially be eligible for.

Supporters of raising or eliminating the cap, or of increasing investment in research and development in other ways, argue that it will help create a more secure economic future for the state and add skilled jobs to the state's workforce.

Opponents counter that other priorities for state funds, such as investing in affordable housing, would do more to boost the economy. They cite low unemployment numbers and projected strong job growth as other factors why an increase in research and development is not needed.