Economists have shown that investments in science and technology (S&T) have an important impact on country's economic growth and productivity gains. Nowadays there is no doubt of the importance in providing public funding for S&T activities. Public policies have been oriented to provide incentives for private spending in S&T as a mechanism to enhance productive efficiency. In this regard, fiscal incentives play a crucial role to channel private efforts in research and development (R&D) projects. International experience based on the OECD case, shows that 10% decrease in the User Cost of Capital due to fiscal incentives will increase 1% R&D spending in the short run and might reach a 10% increase in the long run.