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The Impact of Tax Incentives on Research and Development

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  • Petr Svoboda

    (Institute of business economic and management, Faculty of economics and administration, University of Pardubice, Studentská 95, 532 10 Pardubice, Czech Republic)

Abstract

The goal of this article is to analyze the impact of tax incentives on research and development and compare its effectiveness to direct government support of research and development. The analysis is based on regression analysis, which compares effect of tax incentives for research and development and direct government support (as percentage of GDP) in 28 countries of OECD in 2013 on innovative effectiveness of these countries measured by number of registered triadic patent families per billion GDP in the same year. Results suggest that tax incentives are more effective form of research and development support than direct government funding. Research also revealed interesting case of Switzerland's research and development performance backed by almost none government support, which should be subject to future study.

Suggested Citation

  • Petr Svoboda, 2017. "The Impact of Tax Incentives on Research and Development," Acta Universitatis Agriculturae et Silviculturae Mendelianae Brunensis, Mendel University Press, vol. 65(2), pages 737-743.
    • Handle: RePEc:mup:actaun:actaun_2017065020737
    DOI: 10.11118/actaun201765020737
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    References listed on IDEAS

    as
    1. Bloom, Nick & Griffith, Rachel & Van Reenen, John, 2002. "Do R&D tax credits work? Evidence from a panel of countries 1979-1997," Journal of Public Economics, Elsevier, vol. 85(1), pages 1-31, July.
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    4. 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).
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    Full references (including those not matched with items on IDEAS)

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