IDEAS home Printed from https://ideas.repec.org/a/nse/ecosta/ecostat_2021_526d_7.html
   My bibliography  Save this article

An Evaluation of the Innovation Tax Credit

Author

Listed:
  • Simon Bunel
  • Benjamin Hadjibeyli

Abstract

[eng] The Innovation tax credit (crédit d’impôt innovation, CII) is an extension of the Research tax credit (crédit d’impôt recherche, CIR) intended to boost the incentive effect of the latter on SMEs to encourage them to engage in the creation of new products via the development of prototypes or pilot installations. Introduced in 2013, it represented €120 million of tax credit in 2014 for some 5,300 recipients. This article seeks to measure the impact of the introduction of this scheme on its beneficiaries over the period from 2013 to 2016. Using a difference-in-differences method following propensity score matching, we find a greater increase in employment in the short term for companies benefiting from the scheme, along with a more marked increase in their turnover in the medium term. A greater increase in the number of new products produced by the beneficiaries is also observed. Finally, the introduction of the CII was accompanied by a reduction in the research expenditure reported under the CIR.

Suggested Citation

  • Simon Bunel & Benjamin Hadjibeyli, 2021. "An Evaluation of the Innovation Tax Credit," Economie et Statistique / Economics and Statistics, Institut National de la Statistique et des Etudes Economiques (INSEE), issue 526-527, pages 113-135.
    • Handle: RePEc:nse:ecosta:ecostat_2021_526d_7
    DOI: https://doi.org/10.24187/ecostat.2021.526d.2055
    as

    Download full text from publisher

    File URL: https://www.insee.fr/en/statistiques/fichier/5430852/07_ES526-527_Bunel-Hadjibeyli_EN.pdf
    Download Restriction: no
    File URL: https://libkey.io/https://doi.org/10.24187/ecostat.2021.526d.2055?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. S. Quantin, 2018. "Estimation avec le score de propension sous R," Documents de Travail de l'Insee - INSEE Working Papers m2018-01, Institut National de la Statistique et des Etudes Economiques.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.

      More about this item

      JEL classification:

      • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
      • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
      • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
      • L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
      • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

      Statistics

      Access and download statistics

      Corrections

      All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:nse:ecosta:ecostat_2021_526d_7. See general information about how to correct material in RePEc.

      If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

      If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

      If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

      For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Veronique Egloff (email available below). General contact details of provider: https://edirc.repec.org/data/inseefr.html .

      Please note that corrections may take a couple of weeks to filter through the various RePEc services.

      IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.