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The private return of R&D tax credit

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  • Pierre Courtioux

    (PSB - Paris School of Business - HESAM - HESAM Université - Communauté d'universités et d'établissements Hautes écoles Sorbonne Arts et métiers université, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Antoine Reberioux

    (UFR Médecine UPCité - UFR Médecine [Santé] - Université Paris Cité - UPCité - Université Paris Cité, LADYSS - Laboratoire Dynamiques Sociales et Recomposition des Espaces - UP1 - Université Paris 1 Panthéon-Sorbonne - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité)

  • François Métivier

    (UFR Médecine UPCité - UFR Médecine [Santé] - Université Paris Cité - UPCité - Université Paris Cité, IPGP (UMR_7154) - Institut de Physique du Globe de Paris - INSU - CNRS - Institut national des sciences de l'Univers - UR - Université de La Réunion - IPG Paris - Institut de Physique du Globe de Paris - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité)

Abstract

This article examines the private return on R&D tax credit, defined as the ratio of total tax reliefs obtained by a firm through R&D tax credit to real R&D spending. Based on a dataset merging different sources for French companies, we first show that the distribution of this private return is dispersed. We then use clustering analyses to identify six mutually exclusive types of firms' R&D strategies. We finally show in a regression setting that these strategies explain part of the variance in the private return on R&D tax credit. This study contributes to a better understanding of the heterogeneity of firms' R&D strategies. It also seeks to open new directions in debates surrounding the proper design and reforms of R&D tax credit schemes.

Suggested Citation

  • Pierre Courtioux & Antoine Reberioux & François Métivier, 2021. "The private return of R&D tax credit," Post-Print halshs-03182771, HAL.
    • Handle: RePEc:hal:journl:halshs-03182771
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03182771
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    More about this item

    Keywords

    R&D; tax credit; firm strategies; firm heterogeneity;
    All these keywords.

    JEL classification:

    • C38 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Classification Methdos; Cluster Analysis; Principal Components; Factor Analysis
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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