search query: @indexterm taxation / total: 1872
reference: 349 / 1872
| Author: | Bloom, N. Griffith, R. Reenan, J. van |
| Title: | Do R&D tax credits work? Evidence from a panel of countries 1979-1997 |
| Journal: | Journal of Public Economics
2002 : JUL, VOL. 85:1, p. 1-31 |
| Index terms: | R&D Taxation Investment incentives |
| Language: | eng |
| Abstract: | The paper examines the impact of fiscal incentives on the level of R&D investment. An econometric model of R&D investment is estimated using a new panel of data on tax changes and R&D spending in nine OECD countries over 19-year period (1979-1997). The authors find evidence that tax incentives are effective in increasing R&D intensity. This is true even after allowing for permanent country-specific characteristics, world macro shocks and other policy influences. The authors estimate that a 10 % fall in the cost of R&D stimulates just over a 1 % rise in the level of R&D in the short-run, and just under a 10 % rise in R&D in the long-run. |
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