Do Tax Incentives for Innovation Work? Evaluation of Effectiveness in Russia and in the World

Alexandra Suslina (asuslina@gmail.com) and Roman S. Leukhin (leukhin@eeg.ru)
Additional contact information
Roman S. Leukhin: Economic Expert Group, Moscow 109012, Russia; Financial Research Institute, Moscow 127006, Russia

Finansovyj žhurnal — Financial Journal, 2018, issue 5, 58-69

Abstract: In this paper using an overview of existing literature the authors try to find out whether tax incentives are an effective way to boost innovation or there are other factors, which reduce their efficiency in Russia. There is a comparison of tax incentives with government direct support for R&D Ð the authors conclude that both methods have pros and cons. The article also discusses reasons for low usage of tax incentives in Russia. Moreover, there is a description of key characteristics of the ecosystem necessary for innovation. Based on the provided overview the authors conclude that there is no significant reason to refuse tax incentives usage in Russia. The article provides recommendations to improve tax incentives: research of tax incentives efficiency by the federal government, the Òpatent boxÓ introduction, creation of tax instruments for innovation stimulation, which can be used by individuals, reduction of barriers to benefits access, discussion of special economic zones efficiency and improvement of their tax regimes etc.

Keywords: tax; tax cuts; incentive for innovation; government support for innovation; tax incentive effectiveness (search for similar items in EconPapers)
JEL-codes: H20 H30 K34 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.nifi.ru/images/FILES/Journal/Archive/2018/5/statii/fm_2018_5_05.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:fru:finjrn:180505:p:58-69

DOI: 10.31107/2075-1990-2018-5-58-69

Access Statistics for this article

Finansovyj žhurnal — Financial Journal is currently edited by Vladimir S. Nazarov

More articles in Finansovyj žhurnal — Financial Journal from Financial Research Institute, Moscow 125375, Russia Contact information at EDIRC.
Bibliographic data for series maintained by Gennady Ageev (ageev@nifi.ru).