The Effectiveness of R&D Tax Credits: Cross-Industry Evidence
This paper presents new estimates of the efficacy of R&D tax incentives using cross-countrycross-industry data and a novel measure of tax policy that incorporates differences in the average capital–labour ratio in R&D investment across industries and variation in the tax treatment of different expenditure types across countries and over time. The results suggest that, in the short run, industry increases R&D investment by 0.24 dollars for every dollar of tax revenue forgone. The results appear to be more robust than estimates based on crosscountry or firm-level data.
|Date of creation:||May 2013|
|Contact details of provider:|| Postal: Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Victoria 3010 Australia|
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- Russell Thomson, 2010.
"Tax Policy and R&D Investment by Australian Firms,"
The Economic Record,
The Economic Society of Australia, vol. 86(273), pages 260-280, 06.
- Russell Thomson, 2009. "Tax Policy and R&D Investment by Australian Firms," Melbourne Institute Working Paper Series wp2009n10, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- Russell Thomson, 2013. "Measures of R&D Tax Incentives for OECD Countries," Review of Economics and Institutions, Università di Perugia, vol. 4(3).
- Russell Thomson, 2012. "Measure of R&D Tax Incentives for OECD Countries," Melbourne Institute Working Paper Series wp2012n17, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
- 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.
- Dominique Guellec & Bruno Van Pottelsberghe De La Potterie, 2003. "The impact of public R&D expenditure on business R&D," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 12(3), pages 225-243.
- Dominique Guellec & Bruno van Pottelsberghe de la Potterie, 2000. "The Impact of Public R&D Expenditure on Business R&D," OECD Science, Technology and Industry Working Papers 2000/4, OECD Publishing.
- Bruno Van Pottelsberghe & Dominique Guellec, 2003. "The impact of public R&D expenditure on business R&D," ULB Institutional Repository 2013/6213, ULB -- Universite Libre de Bruxelles.
- Bronwyn Hall, 1992. "R&D Tax Policy During the Eighties: Success or Failure?," NBER Working Papers 4240, National Bureau of Economic Research, Inc. Full references (including those not matched with items on IDEAS)
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