Advanced Search
MyIDEAS: Login to save this paper or follow this series

T&K:n verokannustimien mahdollisia vaikutuksia suomalaisten yrityskyselyjen valossa


Author Info

  • Pajarinen, Mika
  • Rouvinen, Petri
  • Ylä-Anttila, Pekka


Evaluating the possible consequences of R&D tax incentives before their introduction is challenging, not least because the details of the system remain unknown, and because the ultimate reactions and responses of various actors involved remain uncertain. In order to shed some light on the issue, this reports studies the results of surveys targeting the representatives of Finnish firms by employing statistical and econometric tools. R&D tax incentives have become increasingly common among the industrialized countries, and the trend seems to continue. Even though R&D tax incentives and direct support are in essence substitutes, they seem to co-exist, and in a sample of OECD countries there is a (very weak) positive correlation between their relative magnitudes. The rather broad (but uneven) empirical literature on the topic provides some evidence on the complementarity between business enterprise R&D and its tax incentives : A mean estimate – which has, however, a considerable variance – across internationally available scholarly studies suggests that a dollar in R&D tax incen-tives stimulates one to two per cent additional R&D above the “tax dollar” spent. Both Finnish and international survey findings suggest that firms have a (slight) preference for R&D tax incentives over direct support, and that they would increase their innovative efforts in response to additional incentives. Growth-orientated, innovative, and/or externally collaborating firms seem to be more responsive to additional support, although there is no statistically significant difference in responsiveness by the support type.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL:
Download Restriction: no

Bibliographic Info

Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1045.

as in new window
Length: 29 pages
Date of creation: 2006
Date of revision:
Handle: RePEc:rif:dpaper:1045

Contact details of provider:
Postal: Lönnrotinkatu 4 B, FIN-00120 HELSINKI
Phone: +358 (0)9 609 900
Fax: +358 (0)9 601 753
Web page:
More information through EDIRC

Order Information:

Related research

Keywords: Corporate taxation; R&D; innovative activity; public subsidies; tax incentives;

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:


No references listed on IDEAS
You can help add them by filling out this form.



This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.


Access and download statistics


When requesting a correction, please mention this item's handle: RePEc:rif:dpaper:1045. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Kaija Hyvönen-Rajecki).

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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