R&D tax incentives in EU countries: does the impact vary with firm size?

Alessandro Sterlacchini () and Francesco Venturini ()

Small Business Economics, 2019, vol. 53, issue 3, No 9, 687-708

Abstract: Abstract This paper studies the effect of R&D tax incentives on the research activity of manufacturing firms based in France, Italy, Spain and the UK, over the period 2007–2009. Using a matching procedure, we show that, in all the examined countries but Spain, R&D tax incentives induced a statistically significant increase in the intensity of R&D expenses over sales. However, this effect is driven only by the behaviour of small firms. By assessing the benefit-cost ratio of R&D tax policies, we find evidence of substantial additional effects in Italy and the UK.

Keywords: R&D; Tax incentives; Policy evaluation; R&D fiscal multiplier; C21; C26; D04; O32; O38; L26 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:kap:sbusec:v:53:y:2019:i:3:d:10.1007_s11187-018-0074-9

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DOI: 10.1007/s11187-018-0074-9

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