How Effective are Fiscal Incentives for R&D? A New Review of the Evidence
Bronwyn Hall and
John van Reenen ()
No 7098, NBER Working Papers from National Bureau of Economic Research, Inc
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)
New Economics Papers: this item is included in nep-ind, nep-pbe and nep-pub
Note: PE PR
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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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