The Effect of Government R&D Incentives on International R&D Trade

C. Bachmann and M. Baumann ()
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C. Bachmann: Leipzig University
M. Baumann: Leipzig University

Chapter Chapter 19 in University Evolution, Entrepreneurial Activity and Regional Competitiveness, 2016, pp 395-413 from Springer

Abstract: Abstract In the past years, the awareness of the importance of business research and development for the economy has grown significantly. In order to encourage businesses to conduct R&D, governments are increasingly providing tax incentives or grants. To date, most literature has focused on proving the efficiency of these incentives, while their impact on international trade in R&D services has been largely ignored so far. Conducting an empirical analysis, this paper finds that R&D incentives have opposing, time variant effects on international R&D trade. The results indicate that government decisions on R&D incentives should also take the scale of R&D incentives of its major trade partners into consideration.

Keywords: Innovation policy; R&D incentives; Business R&D; International trade (search for similar items in EconPapers)
Date: 2016
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Persistent link: https://EconPapers.repec.org/RePEc:spr:inschp:978-3-319-17713-7_19

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DOI: 10.1007/978-3-319-17713-7_19

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