IDEAS home Printed from https://ideas.repec.org/a/rze/efinan/v11y2016i4p46-56.html
   My bibliography  Save this article

R&D tax incentives for innovation and managerial decisions

Author

Listed:
  • Monika Walicka

    () (Bialystok University of Technology)

  • Joanna Prystrom

    () (Bialystok University of Technology)

Abstract

In many countries tax incentives are a popular means of realizing political, economic and social objectives. The main motive of their application is often to achieve and accelerate the selected activities in the public interest and also stimulate development of industry, and induce growth in research and investment. The key element that helps a company achieve a competitive advantage is innovation. Global competition forces the production of unique products and services. Tax incentives in science, research and development are important in stimulating innovation. The purpose of this article is to show the level of managerial awareness about R&D tax incentives, the level of R&D tax incentive usage by companies in Poland, and main obstacles that managers meet with R&D tax incentives in practice. We explore R&D tax incentives as a government instrument on R&D management and aim to find the reasons why Polish companies do not take advantage of them. We examine 275 companies using a semi-structured questi onnaire. Our findings suggest that many firms report lack of knowledge about such incentives, and firms find many obstacles to reach all of the requirements which are necessary to use the incentive. Due to our analysis we find that large firms, especially those that implement innovation, are more likely to use the tax incentives, but small and medium sized companies find more obstacle. The effect of this tax policy is significant mainly in large, high-tech sector firms.

Suggested Citation

  • Monika Walicka & Joanna Prystrom, 2016. "R&D tax incentives for innovation and managerial decisions," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 11(4), pages 46-56, March.
  • Handle: RePEc:rze:efinan:v:11:y:2016:i:4:p:46-56
    as

    Download full text from publisher

    File URL: http://e-finanse.com/artykuly_eng/323.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Dan Andrews & Ben Westmore, 2014. "Managerial Capital and Business R&D as Enablers of Productivity Convergence," OECD Economics Department Working Papers 1137, OECD Publishing.
    2. Monika Walicka, 2014. "INNOVATION TYPES AT SMEs AND EXTERNAL INFLUENCING FACTORS," "e-Finanse", University of Information Technology and Management, Institute of Financial Research and Analysis, vol. 10(3), pages 73-81, December.
    3. Ion POPA & Victor LAVRIC & Mircea Stelian DRAGHICI, 2012. "Tax Incentive Schemes For R&D – A Solution For The Romanian Economy," Review of General Management, Spiru Haret University, Faculty of Management Brasov, vol. 16(2), pages 87-99, November.
    4. Šárka Laboutková & Milan Žák, 2010. "Užitečná kniha o Evropské unii
      [A Useful Book on the European Union]
      ," Politická ekonomie, University of Economics, Prague, vol. 2010(6), pages 838-843.
    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.
    6. Gernot Hutschenreiter, 2002. "Tax Incentives for Research and Development," Austrian Economic Quarterly, WIFO, vol. 7(2), pages 74-85, May.
    7. Gregory Tassey, 2007. "Tax incentives for innovation: time to restructure the R&E tax credit," The Journal of Technology Transfer, Springer, vol. 32(6), pages 605-615, December.
    8. Pietro Moncada-Paternò-Castello, 2010. "New insights on EU-US comparison of corporate R&D," JRC Working Papers on Corporate R&D and Innovation 2010-01, Joint Research Centre (Seville site).
    9. Yang, Chih-Hai & Huang, Chia-Hui & Hou, Tony Chieh-Tse, 2012. "Tax incentives and R&D activity: Firm-level evidence from Taiwan," Research Policy, Elsevier, vol. 41(9), pages 1578-1588.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    tax incentives; research and development; innovations;

    JEL classification:

    • L20 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:rze:efinan:v:11:y:2016:i:4:p:46-56. 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: (Pawel Bochenek). General contact details of provider: http://edirc.repec.org/data/igwsipl.html .

    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 CitEc recognized a reference but did not link an item in RePEc 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 RePEc Author Service 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.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.