DOES REDUCTION IN THE TAX CREDIT RATE RETARD R&D ACTIVITY? EVIDENCE FROM TAIWAN'S R&D TAX CREDIT REFORM IN 2010
Chia‐Hui Huang and
Contemporary Economic Policy, 2021, vol. 39, issue 2, 398-415
This study examines the effect of the 2010 tax credit reform, which reduced the tax credit rate, on firms' R&D in Taiwan. The empirical results suggested that the tax credit rate reduction has no overall negative effects on firms' R&D expenditure. By contrast, firms were observed to increase their expenditure on R&D. R&D tax credit recipients increased their R&D expenditure more than those who did not use the R&D tax credit. Moreover, we found a considerable difference in the treatment effects of the policy reform on R&D between R&D‐intensive and less R&D‐intensive firms. (JEL H21, H25, O31, O32, O38)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:coecpo:v:39:y:2021:i:2:p:398-415
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