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Tax Breaks for Private Research and Development Activities: Empirical Evidence and Open Research Questions

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  • Tobias Lohse
  • Stephan Waizmann

Abstract

The majority of OECD member countries has either newly introduced tax breaks for private research and development (R&D) activities or has expanded existing structures. Germany and Switzerland are among the few research-intensive countries that currently fund private R&D exclusively via project-related subsidies. This is just one of the reasons why a growing number of voices in Germany are calling for the introduction of a tax-break subsidy system for R&D. This article summarises the key results of empirical evaluation studies that consider the causal effectiveness of the tax-break R&D subsidy systems implemented in other countries.

Suggested Citation

  • Tobias Lohse & Stephan Waizmann, 2016. "Tax Breaks for Private Research and Development Activities: Empirical Evidence and Open Research Questions," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 69(17), pages 49-51, September.
    • Handle: RePEc:ces:ifosdt:v:69:y:2016:i:17:p:49-51
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    References listed on IDEAS

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    2. Daniel J. Wilson, 2009. "Beggar Thy Neighbor? The In-State, Out-of-State, and Aggregate Effects of R&D Tax Credits," The Review of Economics and Statistics, MIT Press, vol. 91(2), pages 431-436, May.
    3. Antoine Dechezlepretre & Elias Einio & Ralf Martin & Kieu-Trang Nguyen & John Van Reenen, 2016. "Do tax incentives for research increase firm innovation? An RD design for R&D," GRI Working Papers 230, Grantham Research Institute on Climate Change and the Environment.
    4. Dechezlepretre, Antoine & Einiö, Elias & Martin, Ralf & Nguyen, Kieu-Trang & Reenen, John Van, 2016. "Do tax incentives for research increase firm innovation? An RD design for R&D, patents and spillovers," LSE Research Online Documents on Economics 66428, London School of Economics and Political Science, LSE Library.
    5. Oliver Falck & Johannes Koenen & Tobias Lohse, 2015. "The Importance of Programme Evaluation in German Innovation Policy," ifo Schnelldienst, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 68(22), pages 52-55, November.
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