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Taxation and Innovation: How R&D Tax Credit Schemes Foster Innovation in the Private Sector

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  • Oliver Falck
  • Anna Kerkhof
  • Christian Pfaffl

Abstract

Research and Development (R&D) is crucial to secure continued economic growth and prosperity Private sector investments in R&D are typically too low, which constitutes a market failure Governments use R&D tax credit schemes to compensate for this failure Input-based tax credit schemes and lenient corporate taxation are especially useful to stimulate private sector R&D activities

Suggested Citation

  • Oliver Falck & Anna Kerkhof & Christian Pfaffl, 2023. "Taxation and Innovation: How R&D Tax Credit Schemes Foster Innovation in the Private Sector," EconPol Forum, CESifo, vol. 24(04), pages 61-66, July.
    • Handle: RePEc:ces:epofor:v:24:y:2023:i:04:p:61-66
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    References listed on IDEAS

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