Remaining relevant in a fast-paced competitive, solution-driven business environment requires substantial investments toward innovation. Section 11D of the Income Tax Act 58 of 1962, as amended promotes private sector investment in scientific and technological research and development activities in South Africa. This incentive encourages economic innovations that hold the potential to transform the economy and benefit society by supporting novel ideas, methods, and technologies. This paper applies a qualitative lens toward exploring fiscal design considerations that optimize research and development activities in South Africa. Based on these insights, the paper proposes a framework for designing research and development tax incentives. Recommendations include the role of collaboration between government, industry, and research institutions in fostering a vibrant innovation ecosystem. Overall, this paper contributes to the ongoing fiscal policy dialogue on promoting innovation and research and development investment in South Africa.