IDEAS home Printed from https://ideas.repec.org/a/fan/polipo/vhtml10.3280-poli2014-003006.html
   My bibliography  Save this article

The race for R&D subsidies: evaluating the effectiveness of tax credits in Italy

Author

Listed:
  • Claudia Cantabene
  • Leopoldo Nascia

Abstract

In Italy, between 2007 and 2009, the public support to innovation was focused on tax credit for business R&D. However, one year after its introduction, the Italian government limited the diffusion of such benefit by setting an upper threshold to potentially forgone tax revenue and introducing an electronic selection procedure which made the access to tax credit by firms a random process. This gave us the chance of evaluating the economic impact of this subsidy by designing a quasi-experiment. Exploiting original evidence from administrative and statistical sources, it is possible to argue that the Italian tax credit 2007-2009 had been successful in stimulating private R&D expenditure and that a R&D cost elasticity of around 1.6 could be estimated.

Suggested Citation

  • Claudia Cantabene & Leopoldo Nascia, 2014. "The race for R&D subsidies: evaluating the effectiveness of tax credits in Italy," ECONOMIA E POLITICA INDUSTRIALE, FrancoAngeli Editore, vol. 2014(3), pages 133-158.
  • Handle: RePEc:fan:polipo:v:html10.3280/poli2014-003006
    as

    Download full text from publisher

    File URL: http://www.francoangeli.it/riviste/Scheda_Rivista.aspx?IDArticolo=51946&Tipo=ArticoloPDF
    Download Restriction: Single articles can be downloaded buying download credits, for info: https://www.francoangeli.it/DownloadCredit
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Aristei, David & Sterlacchini, Alessandro & Venturini, Francesco, 2015. "The effects of public supports on business R&D: firm-level evidence across EU countries," MPRA Paper 64611, University Library of Munich, Germany.
    2. Alessandro Sterlacchini & Francesco Venturini, 2019. "R&D tax incentives in EU countries: does the impact vary with firm size?," Small Business Economics, Springer, vol. 53(3), pages 687-708, October.
    3. David Aristei & Alessandro Sterlacchini & Francesco Venturini, 2017. "Effectiveness of R&D subsidies during the crisis: firm-level evidence across EU countries," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(6), pages 554-573, August.
    4. Chiara Bocci & Annalisa Caloffi & Marco Mariani & Alessandro Sterlacchini, 2023. "Evaluating Public Support to the Investment Activities of Business Firms: A Multilevel Meta-Regression Analysis of Italian Studies," Italian Economic Journal: A Continuation of Rivista Italiana degli Economisti and Giornale degli Economisti, Springer;Società Italiana degli Economisti (Italian Economic Association), vol. 9(1), pages 1-34, March.
    5. Alessandro Sterlacchini, 2017. "The intensity of business R&D in Italy: why reducing the gap with the EU is possible and worthwhile," Economia e Politica Industriale: Journal of Industrial and Business Economics, Springer;Associazione Amici di Economia e Politica Industriale, vol. 44(2), pages 245-257, June.
    6. Leopoldo Nascia & Mario Pianta & Giovanni La Placa, 2016. "RIO Country Report 2015: Italy," JRC Research Reports JRC101197, Joint Research Centre.
    7. Blandinieres, Florence & Steinbrenner, Daniela, 2021. "How does the evolution of R&D tax incentives schemes impact their effectiveness? Evidence from a meta-analysis," ZEW Discussion Papers 21-020, ZEW - Leibniz Centre for European Economic Research.

    More about this item

    Keywords

    Investimenti in R&S; credito d?imposta; addizionalit?;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fan:polipo:v:html10.3280/poli2014-003006. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Stefania Rosato (email available below). General contact details of provider: http://www.francoangeli.it/riviste/sommario.aspx?IDRivista=13 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.