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An assessment of R&D tax credits and their role towards innovation within Irish industry

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  • Kennedy James
  • Barry Frank

    (Trinity Business School, Trinity College Dublin, Ireland)

Abstract

The Irish Government has identified research and development (R&D) and innovation as among the key pillars of growth within the economy. To achieve this growth, R&D tax incentives, which are adopted in advanced economies, are set into policy to encourage firms to innovate, thus, making companies more competitive and productive. One of the key enablers to driving R&D is a well-designed, competitive and sustainable tax policy to support the activity. However, evidence on the effectiveness of R&D tax incentives for innovation is largely anecdotal and the influence of innovation on firm-level taxation is still underexplored, in terms of and empirical examination. This paper sets out to review the recent trends and views of industry regarding R&D tax credits.

Suggested Citation

  • Kennedy James & Barry Frank, 2020. "An assessment of R&D tax credits and their role towards innovation within Irish industry," The Irish Journal of Management, Sciendo, vol. 39(1), pages 34-46, August.
    • Handle: RePEc:vrs:irjman:v:39:y:2020:i:1:p:34-46:n:1
    DOI: 10.2478/ijm-2010-0003
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    References listed on IDEAS

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    1. Czarnitzki, Dirk & Hanel, Petr & Rosa, Julio Miguel, 2011. "Evaluating the impact of R&D tax credits on innovation: A microeconometric study on Canadian firms," Research Policy, Elsevier, vol. 40(2), pages 217-229, March.
    2. Castellacci, Fulvio & Lie, Christine Mee, 2015. "Do the effects of R&D tax credits vary across industries? A meta-regression analysis," Research Policy, Elsevier, vol. 44(4), pages 819-832.
    3. Lei Gao & Leo L. Yang & Joseph H. Zhang, 2016. "Corporate patents, R&D success, and tax avoidance," Review of Quantitative Finance and Accounting, Springer, vol. 47(4), pages 1063-1096, November.
    4. Martin, Stephen & Scott, John T., 2000. "The nature of innovation market failure and the design of public support for private innovation," Research Policy, Elsevier, vol. 29(4-5), pages 437-447, April.
    5. Isabel Busom & Beatriz Corchuelo & Ester Martínez-Ros, 2014. "Tax incentives… or subsidies for business R&D?," Small Business Economics, Springer, vol. 43(3), pages 571-596, October.
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