Tax incentives are a key tool in fiscal policy to encourage companies and individuals to invest in research and development (R&D). By reducing the tax burden, governments make it financially viable for businesses to innovate and develop new technologies. Such incentives can include tax credits, deductions, or exemptions for expenses incurred in R&D activities. These measures not only lower costs but also increase the return on investment for innovation. As a result, organizations are more willing to explore cutting-edge areas such as artificial intelligence, biotechnology, and green technology, driving long-term economic growth and scientific progress.