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Application of R & D fiscal incentives in Spanish manufacturing firms

Author

Listed:
  • Mª Beatriz Corchuelo Martínez-Azúa

    (Universidad de Extremadura)

  • Ester Martínez Ros

    (Universidad Carlos III de Madrid)

Abstract

This paper explores the factors that influence the decision to apply R&D fiscal incentives in a sample of Spanish manufacturing firms. The observation that few innovative firms apply these incentives has motivated this analysis. We developed a model considering that behind the decision to use these fiscal incentives, firms carry out a cost-benefit evaluation. The data used come from the Encuesta sobre Estrategias Empresariales (ESEE) provided by the Ministry of Industry. The results show that firms evaluate positively the benefits from fiscal incentives, although there are some difficulties in applying them. The lack of information, the lack of some resources and the absence of results related to innovation activities are obstacles that may justify the scarce application of the tax incentives for R&D by the Spanish manufacturing firms.

Suggested Citation

  • Mª Beatriz Corchuelo Martínez-Azúa & Ester Martínez Ros, 2008. "Application of R & D fiscal incentives in Spanish manufacturing firms," Hacienda Pública Española / Review of Public Economics, IEF, vol. 187(4), pages 9-39, December.
    • Handle: RePEc:hpe:journl:y:2008:v:187:i:4:p:9-39
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    References listed on IDEAS

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    5. Czarnitzki, Dirk & Hanel, Petr & Rosa, Julio Miguel, 2011. "Evaluating the impact of R&D tax credits on innovation: A microeconometric study on Canadian firms," Research Policy, Elsevier, vol. 40(2), pages 217-229, March.
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    Full references (including those not matched with items on IDEAS)

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    Cited by:

    1. Busom, Isabel & Corchuelo, Beatriz, 2011. "Tax incentives and direct support for R&D : what do firms use and why?," IC3JM - Estudios = Working Papers id-11-03, Instituto Mixto Carlos III - Juan March de Ciencias Sociales (IC3JM).
    2. repec:cte:idrepe:id-11-03 is not listed on IDEAS

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    More about this item

    Keywords

    R&D obstacles; fiscal incentives; Spanish manufacturing firms.;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm

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