The results of a REMI simulation model on the 10-year (2015-2024) span after the implementation of a new $200 million Research & Development credit display an increase in GDP of $7.7 billion and $10.5 billion compared to the California economy without the credit. Overall personal income for Californians would increase by a total of between $7.3 and $10.2 billion by Year 10. As far as the industries most impacted, professional, technical, and scientific services receives the largest residual influx of between $4.2 and $6.2 billion with the manufacturing, real estate, construction, and finance sectors considerably behind technology. California should take bold steps to maintain and enhance its capacity for innovation and the conversion of it into commercial applications, thereby allowing firms to create high-quality jobs in the state and benefitting from the large multiplier effects associated with them.
Milken Institute – California’s Innovation-Based Economy [full PDF]