The race for R&D subsidies: evaluating the effectiveness of tax credits in Italy

Claudia Cantabene and Leopoldo Nascia

ECONOMIA E POLITICA INDUSTRIALE, 2014, vol. 2014/3, issue 3, 133-158

Abstract: In Italy, between 2007 and 2009, the public support to innovation was focused on tax credit for business R&D. However, one year after its introduction, the Italian government limited the diffusion of such benefit by setting an upper threshold to potentially forgone tax revenue and introducing an electronic selection procedure which made the access to tax credit by firms a random process. This gave us the chance of evaluating the economic impact of this subsidy by designing a quasi-experiment. Exploiting original evidence from administrative and statistical sources, it is possible to argue that the Italian tax credit 2007-2009 had been successful in stimulating private R&D expenditure and that a R&D cost elasticity of around 1.6 could be estimated.

Keywords: Investimenti in R&S; credito d?imposta; addizionalit? (search for similar items in EconPapers)
JEL-codes: C14 H32 O32 (search for similar items in EconPapers)
Date: 2014
References: Add references at CitEc
Citations: View citations in EconPapers (7)

Downloads: (external link)
http://www.francoangeli.it/riviste/Scheda_Rivista. ... 946&Tipo=ArticoloPDF (text/html)
Single articles can be downloaded buying download credits, for info: https://www.francoangeli.it/DownloadCredit

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:fan:polipo:v:html10.3280/poli2014-003006

Ordering information: This journal article can be ordered from
http://www.francoang ... io.aspx?IDRivista=13

Access Statistics for this article

ECONOMIA E POLITICA INDUSTRIALE is currently edited by FrancoAngeli

More articles in ECONOMIA E POLITICA INDUSTRIALE from FrancoAngeli Editore
Bibliographic data for series maintained by Stefania Rosato ().