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Tax incentives for R&D: what drives cross-country differences?

Author

Listed:
  • Krzysztof Szczygielski

    (University of Warsaw)

  • Jacek Lewkowicz

    (University of Warsaw)

Abstract

We explore cross-country variation in the growing generosity of R&D-related tax breaks. Our findings suggest that these measures might compensate for the low government effectiveness and modest innovation policies of some countries.

Suggested Citation

  • Krzysztof Szczygielski & Jacek Lewkowicz, 2023. "Tax incentives for R&D: what drives cross-country differences?," Economics Bulletin, AccessEcon, vol. 43(2), pages 992-998.
    • Handle: RePEc:ebl:ecbull:eb-22-00876
    as

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    References listed on IDEAS

    as
    1. Dimos, Christos & Pugh, Geoff & Hisarciklilar, Mehtap & Talam, Ema & Jackson, Ian, 2022. "The relative effectiveness of R&D tax credits and R&D subsidies: A comparative meta-regression analysis," Technovation, Elsevier, vol. 115(C).
    2. Haaland, Jan I. & Kind, Hans Jarle, 2008. "R&D policies, trade and process innovation," Journal of International Economics, Elsevier, vol. 74(1), pages 170-187, January.
    3. Wouter Boon & Jakob Edler, 2018. "Demand, challenges, and innovation. Making sense of new trends in innovation policy," Science and Public Policy, Oxford University Press, vol. 45(4), pages 435-447.
    4. Jakob Edler & Jan Fagerberg, 2017. "Innovation policy: what, why, and how," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 33(1), pages 2-23.
    5. Castellacci, Fulvio & Lie, Christine Mee, 2015. "Do the effects of R&D tax credits vary across industries? A meta-regression analysis," Research Policy, Elsevier, vol. 44(4), pages 819-832.
    6. Giammario Impullitti, 2010. "International Competition And U.S. R&D Subsidies: A Quantitative Welfare Analysis," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 51(4), pages 1127-1158, November.
    7. Keen, Michael & Lockwood, Ben, 2010. "The value added tax: Its causes and consequences," Journal of Development Economics, Elsevier, vol. 92(2), pages 138-151, July.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    tax incentives for R&D; innovation policy; government efficiency;
    All these keywords.

    JEL classification:

    • H2 - Public Economics - - Taxation, Subsidies, and Revenue
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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