Ievaluation of Research and Development Tax Incentives Scheme in Croatia

Zoran Aralica and Valerija Botric

Economic Research-Ekonomska Istraživanja, 2013, vol. 26, issue 3, 63-80

Abstract: According to the European Innovation Scoreboard metrics Croatia belongs to the group of moderate innovators, i.e. a country with below average innovation performance in comparison to the EU average in the period 2009-2010. Government subsidies are frequently introduced to improve countries’ innovation performance. Whether existing R&D tax scheme in Croatia produces expected results is the key research question analyzed in the paper. Based on the microeconometric analysis of individual firms’ data, we confirm positive effect of the subsidies on expenditures in research and development as well as on product innovation. However, the significant effect on process innovation is not found.

Date: 2013
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DOI: 10.1080/1331677X.2013.11517622

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