Table:
|  |  | Three Months Ended |  |
| --- | --- | --- | --- |
|  | December 31, 2019 | September 29,2019 | December 31, 2018 |
|  |  | (Unaudited, in millions) |  |
| Research and development funding | $68 | $14 | $19 |
| Phase-out and start-up costs | (16) | (15) | (1) |
| Exchange gain (loss), net | 1 | (1) | — |
| Patent costs | (1) | (1) | (1) |
| Gain on sale of non-current assets | 1 | — | 1 |
| Other, net | 1 | 1 | (2) |
| Other income and expenses, net | $54 | $(2) | $16 |
| As percentage of net revenues | 2.0% | (0.1)% | 0.6% |
Paragraphs:
In the fourth quarter of 2019, we recognized other income, net of expenses, of $54 million, increasing from a negative $2 million in the prior quarter and from an income of $16 million in the year-ago quarter, reflecting higher R&D grants in Italy associated with the IPCEI program.
Other income and expenses, net
Question:
What led to increase in the other income and expenses, net in the fourth quarter of 2019?
Answer: higher R&D grants in Italy associated with the IPCEI program.