IDEAS home Printed from https://ideas.repec.org/p/btx/wpaper/1201.html
   My bibliography  Save this paper

Trends in UK BERD after the Introduction of R&D Tax Credits

Author

Listed:
  • Steve R. Bond

    () (Nuffield College, Department of Economics and Centre for Business Taxation, University of Oxford, UK, and Institute for Fiscal Studies.)

  • Irem Guceri

    () (St Peter?s College, Department of Economics and Centre for Business Taxation, University of Oxford)

Abstract

This paper documents the increase in R&D intensity in the UK manufacturing sector in the period following the introduction of R&D tax credits in 2000-02. This increase is broadly in line with that predicted by econometric studies of the impact of R&D tax credits, notably Bloom, Griffith and Van Reenen (2002). If anything, UK manufacturing R&D intensity has risen faster than their model predicts. The timing of this increase is not simply explained by trends in neighbouring economies, although one puzzle is that the increase is largely confined to high tech sub-sectors of manufacturing.

Suggested Citation

  • Steve R. Bond & Irem Guceri, 2012. "Trends in UK BERD after the Introduction of R&D Tax Credits," Working Papers 1201, Oxford University Centre for Business Taxation.
  • Handle: RePEc:btx:wpaper:1201
    as

    Download full text from publisher

    File URL: http://www.sbs.ox.ac.uk/sites/default/files/Business_Taxation/Docs/WP1201.pdf
    Download Restriction: no

    References listed on IDEAS

    as
    1. Bloom, Nick & Griffith, Rachel & Van Reenen, John, 2002. "Do R&D tax credits work? Evidence from a panel of countries 1979-1997," Journal of Public Economics, Elsevier, vol. 85(1), pages 1-31, July.
    2. Van Reenen, John, 1997. "Why has Britain had slower R&D growth?," Research Policy, Elsevier, vol. 26(4-5), pages 493-507, December.
    3. Jacques Mairesse & Benoît Mulkay, 2011. "Evaluation de l'Impact du Crédit Impot Recherche," Working Papers 2011-35, Center for Research in Economics and Statistics.
    4. Gavin Cameron, 1996. "On the measurement of real R&D: Divisia price indices for UK business enterprise R&D," Research Evaluation, Oxford University Press, vol. 6(3), pages 215-219, December.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Paulo G. Correa & Irem Guceri, 2013. "Tax Incentives for Research and Development," World Bank Other Operational Studies 23659, The World Bank.
    2. Irem Guceri, 2015. "Tax incentives and R&D: an evaluation of the 2002 UK reform using micro data," Working Papers 1511, Oxford University Centre for Business Taxation.
    3. Antoine Dechezleprêtre & Elias Einiö & Ralf Martin & Kieu-Trang Nguyen & John Van Reenen, 2016. "Do Tax Incentives for Research Increase Firm Innovation? An RD Design for R&D," CEP Discussion Papers dp1413, Centre for Economic Performance, LSE.
    4. Ugur, Mehmet & Trushin, Eshref & Solomon, Edna & Guidi, Francesco, 2016. "R&D and productivity in OECD firms and industries: A hierarchical meta-regression analysis," Research Policy, Elsevier, vol. 45(10), pages 2069-2086.
    5. Nicholas Crafts, 2013. "Returning to Growth: Policy Lessons from History," Fiscal Studies, Institute for Fiscal Studies, vol. 34(2), pages 255-282, June.
    6. Isabel Busom & Beatriz Corchuelo & Ester Martínez-Ros, 2017. "Participation inertia in R&D tax incentive and subsidy programs," Small Business Economics, Springer, vol. 48(1), pages 153-177, January.
    7. Brown, James R. & Martinsson, Gustav & Petersen, Bruce C., 2017. "What promotes R&D? Comparative evidence from around the world," Research Policy, Elsevier, vol. 46(2), pages 447-462.

    More about this item

    Keywords

    R&D; tax credits;

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:btx:wpaper:1201. 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: (Dongxian Guo). General contact details of provider: http://edirc.repec.org/data/sbsoxuk.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.