L’impact du CIR sur les personnels de la recherche

Evens Salies

No 2020-07, Documents de Travail de l'OFCE from Observatoire Francais des Conjonctures Economiques (OFCE)

Abstract: This paper surveys the literature on the impact of the French research tax credit on scientists, engineers and other R&D personnel. After reviewing the effect of this subsidy on the user cost of R&D capital, we compare the results of several econometric evaluations of its effectiveness. They reveal, among other things, that the research tax credit corrects discrimination in the hiring of PhD scientists, but with a windfall effect for PhD-engineers. In very small businesses, R&D employment aid (R&D tax credit inclusive) acts to the detriment of unaided employment. Finally, with only 2.5% of R&D activities outsourced to public research bodies, there is no visible effect on their personnel. Given that most R&D expenditures represent staff salaries, these results support previous evidence that research tax incentive has a moderate effect on aggregated R&D in France. They also question changes from the original intent of policy makers when the research tax credit was created in 1983: to remedy for failures in the market for knowledge, not to subsidize highly qualified labour costs as a tool for competitiveness, alongside cuts in employers’ social security contributions on less-skilled labor. The paper concludes with a discussion of the relevance of recent reforms.

Keywords: Research public policy; R&D investment; Productivity; Causal inference (search for similar items in EconPapers)
JEL-codes: C21 C31 I28 J24 O38 (search for similar items in EconPapers)
Date: 2020-02
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Related works:
Working Paper: L'impact du CIR sur les personnels de la recherche (2020)
Working Paper: L'impact du CIR sur les personnels de la recherche (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:fce:doctra:2007

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