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The Effects Of Tax Reliefs On The R&D Activity In Slovenia

Author

Listed:
  • Suzana Laporsek

    (University of Primorska, Slovenia)

  • Igor Stubelj

    (University of Primorska, Slovenia)

  • Matija Vodopivec

    (OECD, Slovenia)

Abstract

The paper investigates the effect of tax incentives on R&D expenditure in Slovenian firms, differentiating the impact by firm size and age. As there is a lack of empirical research on the effectiveness of these reliefs in Slovenia, and the research uses administrative firm-level data and an innovative approach, this study makes an important contribution to the literature. The effectiveness of the R&D tax incentives is based on the direct approach. The effect is identified by applying a quasi-experimental approach and the use of the difference-in-differences method. To rule out the effect of concurrent factors that could influence the level of R&D expenditure at the firm level, the paper uses the variation in regional tax relief rates. The paper finds that a one percentage point increase in the R&D tax relief was associated with a 0.571 percentage point increase in firms' R&D expenditure. The impact was larger for smaller and younger firms.

Suggested Citation

  • Suzana Laporsek & Igor Stubelj & Matija Vodopivec, 2026. "The Effects Of Tax Reliefs On The R&D Activity In Slovenia," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 35(1), pages 83-102, june.
    • Handle: RePEc:avo:emipdu:v:35:y:2026:i:1:p:83-102
    DOI: 10.17818/EMIP/2025/32
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    Keywords

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    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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