Do Canadian Firms Respond to Fiscal Incentives To Research and Development?
AbstractThis study examines the effectiveness of R&D tax incentives using an unbalanced panel of 434 Canadian firms. Not all firms in the sample are R&D performers. A B-index summarizing the various tax incentives for R&D is constructed for each firm, taking into account individual ceilings in the use of relevant tax incentives. A generalized Tobit model with fixed effects is estimated. A one percent increase in the federal tax credit of R&D yields an average of $0.98 additional R&D expenditure per dollar of tax revenues foregone.
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Bibliographic InfoPaper provided by Universite Aix-Marseille III in its series G.R.E.Q.A.M. with number 97b05.
Length: 43 pages
Date of creation: 1997
Date of revision:
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TAX INCENTIVES ; RESEARCH AND DEVELOPMENT ; CANADA;
Other versions of this item:
- Marcel Dagenais & Pierre Mohnen & Pierre Therrien, 1997. "Do Canadian Firms Respond to Fiscal Incentives to Research and Development?," CIRANO Working Papers 97s-34, CIRANO.
- H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
- O31 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
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