Measuring the Effectiveness of R&D tax credits in the Netherlands

Boris Lokshin and Pierre Mohnen

CIRANO Working Papers from CIRANO

Abstract: This paper examines the impact of the Dutch R&D fiscal incentive program, known as WBSO, on R&D capital formation. Taking a factor-demand approach we measure the elasticity of firm R&D capital accumulation to its user cost. An econometric model is estimated using a rich unbalanced panel covering the period 1996-2004 with firm-specific R&D user costs varying with tax incentives. Using the estimated user cost elasticity, we examine the impact of the R&D incentive program. We find evidence that the program of R&D incentives in the Netherlands has been effective in reducing the user cost of R&D and in stimulating firms' investment in R&D. Cette étude analyse l'effet du programme d'incitations fiscales à la recherche aux Pays-Bas, connu sous le nom de WBSO, sur la formation du capital de recherche. À partir d'une approche de demande de facteurs de production, nous mesurons l'élasticité du stock de capital de recherche au coût d'usage de la recherche. L'estimation économétrique se base sur un panel d'entreprises non-cylindré, couvrant la période 1996-2004, avec des coûts d'usage de la recherche variables. Nous trouvons que les incitations fiscales à la recherche ont effectivement baissé le coût d'usage de la recherche et ainsi stimulé les investissements en recherche et développement aux Pays-Bas.

Keywords: R&D tax credits; panel data; crowding out; user-cost elasticity., crédit d'impôt à la recherche, données panel, coût d'usage à la recherche, crowding-out. (search for similar items in EconPapers)
JEL-codes: C23 H25 H50 O32 O38 (search for similar items in EconPapers)
Date: 2007-12-01
New Economics Papers: this item is included in nep-eec, nep-ino, nep-ipr, nep-pr~, nep-mic and nep-pbe
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (29)

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Persistent link: https://EconPapers.repec.org/RePEc:cir:cirwor:2007s-29

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