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The Effect of Government R&D Incentives on International R&D Trade

In: University Evolution, Entrepreneurial Activity and Regional Competitiveness

Author

Listed:
  • C. Bachmann

    (Leipzig University)

  • M. Baumann

    (Leipzig University)

Abstract

In the past years, the awareness of the importance of business research and development for the economy has grown significantly. In order to encourage businesses to conduct R&D, governments are increasingly providing tax incentives or grants. To date, most literature has focused on proving the efficiency of these incentives, while their impact on international trade in R&D services has been largely ignored so far. Conducting an empirical analysis, this paper finds that R&D incentives have opposing, time variant effects on international R&D trade. The results indicate that government decisions on R&D incentives should also take the scale of R&D incentives of its major trade partners into consideration.

Suggested Citation

  • C. Bachmann & M. Baumann, 2016. "The Effect of Government R&D Incentives on International R&D Trade," International Studies in Entrepreneurship, in: David Audretsch & Erik Lehmann & Michele Meoli & Silvio Vismara (ed.), University Evolution, Entrepreneurial Activity and Regional Competitiveness, edition 127, chapter 0, pages 395-413, Springer.
    • Handle: RePEc:spr:inschp:978-3-319-17713-7_19
    DOI: 10.1007/978-3-319-17713-7_19
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