➀ The US 'Big Beautiful Bill' proposes allowing companies to immediately deduct 100% of domestic R&D expenses (2025-2029), boosting cash flow and innovation incentives;

➁ The UK’s RDEC offers a 20-30% tax credit, but complex claims processes and policy changes have stifled innovation, with R&D spending at 2.8% of GDP vs. 3.4% in the US;

➂ A 100% same-year tax credit in the UK could mitigate the current system’s negative impact on innovation and align with increased government R&D funding plans.

➀ The article discusses the challenges and opportunities for Europe in the global AI competition.

➁ It mentions the large-scale investment in AI infrastructure in the US and the emergence of cost-effective language models from China.

➂ The EU's response with the 'InvestAI' initiative and the 200 billion Euro investment package is highlighted, along with the EU Commission's plan to invest 1.3 billion euros in AI by 2027.

➀ The CHIPS and Science Act, aimed at strengthening U.S. semiconductor manufacturing, is under threat of repeal by the Trump administration.

➁ The Act has already attracted nearly $450 billion in private investment from leading companies, raising concerns about the impact of its repeal on the U.S. chip market.

➂ Political hurdles and legal obligations make the repeal process complex and challenging.

➀ The author, Ed, discusses the tendency of ministers to focus on frequent announcements rather than substantive strategies.

➁ He mentions his practice of recycling old announcements with modifications to appear innovative.

➂ Ed's department has been making numerous press releases on topics such as gigabit broadband and AI company grants, leading to jealousy among his ministerial colleagues.