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The additionality effects of R&D tax credits across sectors: A cross-country microeconometric analysis

Author

Listed:
  • Isabel Bodas Freitas

    (Grenoble School of Management)

  • Fulvio Castellacci

    (TIK Centre, University of Oslo)

  • Roberto Fontana

    (Bocconi University)

  • Franco Malerba

    (Bocconi University)

  • Andrea Vezzulli

    (Bocconi University)

Abstract

Do the additionality effects of R&D tax credits vary across sectors? The paper presents a microeconometric analysis of this question for three countries: Norway, Italy and France. We use a panel of firm-level data from three waves of the Innovation Surveys carried out in these countries, referring to the years 2004, 2006 and 2008 respectively. The study estimates input and output additionality effects of R&D tax credits in each of these economies, and it investigates how these effects differ across sectors characterized by different R&D orientation and competition conditions. The results point out that firms in industries with high R&D orientation and in sectors with high market concentration are on average more responsive to fiscal incentives to R&D.

Suggested Citation

  • Isabel Bodas Freitas & Fulvio Castellacci & Roberto Fontana & Franco Malerba & Andrea Vezzulli, 2015. "The additionality effects of R&D tax credits across sectors: A cross-country microeconometric analysis," Working Papers on Innovation Studies 20150424, Centre for Technology, Innovation and Culture, University of Oslo.
    • Handle: RePEc:tik:inowpp:20150424
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    References listed on IDEAS

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    Cited by:

    1. Simachev, Y. & Kuzyk, M. & Zudin, N., 2017. "The Impact of Public Funding and Tax Incentives on Russian Firms: Additionality Effects Evaluation," Journal of the New Economic Association, New Economic Association, vol. 34(2), pages 59-93.
    2. Michel Dumont, 2019. "Working Paper 04-19 - Tax incentives for business R&D in Belgium - Third evaluation," Working Papers 1904, Federal Planning Bureau, Belgium.
    3. Michel Dumont, 2015. "Working Paper 05-15 - Evaluation of federal tax incentives for private R&D in Belgium: An update," Working Papers 1505, Federal Planning Bureau, Belgium.
    4. Dumont, Michel, 2022. "Public support to business research and development in Belgium: fourth evaluation," MPRA Paper 115418, University Library of Munich, Germany.

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