How Effective are Fiscal Incentives for R&D? A New Review of the Evidence

Bronwyn H. Hall and John van Reenen

No 7098, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper surveys the econometric evidence on the effectiveness of fiscal incentives for R&D. We describe the effects of tax systems in OECD countries on the user cost of R&D - the current position, changes over time and across different firms in different countries. We describe and criticize the methodologies used to evaluate the effect of the tax system on R&D behavior and the results from different studies. In the current (imperfect) state of knowledge we conclude that a dollar in tax credit for R&D stimulates a dollar of additional R&D.

JEL-codes: H32 O31 (search for similar items in EconPapers)
Date: 1999-04
New Economics Papers: this item is included in nep-ind, nep-pbe and nep-pub
Note: PE PR
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Citations: View citations in EconPapers (53)

Published as Research Policy, Vol. 29 (May 2000).

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Persistent link: https://EconPapers.repec.org/RePEc:nbr:nberwo:7098

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