An Evaluation of the Innovation Tax Credit

Évaluation du crédit d’impôt innovation

Simon Bunel () and Benjamin Hadjibeyli ()
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Simon Bunel: Centre de recherche de la Banque de France - Banque de France
Benjamin Hadjibeyli: DG Trésor

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Abstract: The Innovation tax credit (crédit d'impôt innovation, CII) is an extension of the Research tax credit (crédit d'impôt recherche, CIR) intended to boost the incentive effect of the latter on SMEs to encourage them to engage in the creation of new products via the deve- lopment of prototypes or pilot installations. Introduced in 2013, it represented €120 million of tax credit in 2014 for some 5,300 recipients. This article seeks to measure the impact of the introduction of this scheme on its beneficiaries over the period from 2013 to 2016. Using a difference-in-differences method following propensity score matching, we find a greater increase in employment in the short term for companies benefiting from the scheme, along with a more marked increase in their turnover in the medium term. A greater increase in the number of new products produced by the beneficiaries is also observed. Finally, the introduction of the CII was accompanied by a reduction in the research expenditure reported under the CIR.

Keywords: innovation; tax credit; evaluation; products; produits; évaluation; crédit d'impôt (search for similar items in EconPapers)
Date: 2021
Note: View the original document on HAL open archive server: https://insee.hal.science/hal-05219525v1
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Published in Economie et Statistique / Economics and Statistics, 2021, 526-527, pp.113 - 135. ⟨10.24187/ecostat.2021.526d.2055⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-05219525

DOI: 10.24187/ecostat.2021.526d.2055

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