IDEAS home Printed from https://ideas.repec.org/p/oec/ctpaaa/27-en.html
   My bibliography  Save this paper

Fiscal incentives for R&D and innovation in a diverse world

Author

Listed:
  • Thomas Neubig

    (OECD)

  • Fernando Galindo-Rueda

    (OECD)

  • Silvia Appelt

    (OECD)

  • Chiara Criscuolo

    (OECD)

  • Matej Bajgar

    (OECD)

Abstract

Public policy has an important role to play in promoting research and development (R&D) the development, diffusion, and use of new knowledge and innovations. Fiscal incentives, including tax policies, should be directed at specific barriers, impediments or synergies to facilitate the desired level of investment in R&D and innovations. Without careful design, policies can have unintended consequences such as favouring incumbent firms, encouraging small firms to undertake less efficient activities, or creating arbitrage and rent-seeking activity. R&D tax policy needs to be considered in the context of the country’s general tax policies, its broader innovation policy mix and its other R&D support policies. More R&D activity in one country does not necessarily result in an overall increase in global innovation if it is simply shifted from another country. More research is needed to determine the extent to which R&D fiscal incentives in one country increase overall R&D, the quality of that R&D, and its positive spillovers to other sectors of the economy and other countries. Les incitations fiscales en faveur de la R-D et de l'innovation dans un monde diversifié La politique publique a un rôle important à jouer pour promouvoir la recherche et le développement, la création, la diffusion et l’utilisation de nouvelles connaissances et d’innovations. Les incitations fiscales, y compris les politiques fiscales, doivent cibler des obstacles, freins ou synergies spécifiques de manière à obtenir le niveau souhaité d’investissements dans la R-D et dans l’innovation. Si elles ne sont pas soigneusement conçues, ces politiques peuvent avoir des conséquences fortuites, comme favoriser les entreprises en place, inciter les petites entreprises à entreprendre des activités moins efficientes ou ouvrir la voie à l’arbitrage et à la recherche de rentes. Les mesures fiscales en faveur de la R-D doivent être appréhendées dans le contexte des politiques fiscales générales du pays, de l’ensemble des actions menées en faveur de l’innovation et de ses autres politiques d’aide à la R-D. Une intensification des activités de R-D dans un pays n’entraîne pas nécessairement une augmentation globale de l’innovation mondiale si elle correspond à un simple transfert d’un autre pays. Des travaux supplémentaires sont nécessaires pour déterminer dans quelle mesure les incitations fiscales en faveur de la R-D dans un pays augmentent le niveau global de R-D, la qualité de cette R-D et ses retombées positives dans d’autres secteurs de l’économie et dans d’autres pays.

Suggested Citation

  • Thomas Neubig & Fernando Galindo-Rueda & Silvia Appelt & Chiara Criscuolo & Matej Bajgar, 2016. "Fiscal incentives for R&D and innovation in a diverse world," OECD Taxation Working Papers 27, OECD Publishing.
  • Handle: RePEc:oec:ctpaaa:27-en
    DOI: 10.1787/5jlr9stckfs0-en
    as

    Download full text from publisher

    File URL: https://doi.org/10.1787/5jlr9stckfs0-en
    Download Restriction: no

    File URL: https://libkey.io/10.1787/5jlr9stckfs0-en?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

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


    Cited by:

    1. Evens Salies, 2017. "Etudes d’impact du crédit d’impôt recherche (CIR)," SciencePo Working papers Main hal-03613592, HAL.
    2. Evens Salies, 2020. "L'impact du CIR sur les personnels de la recherche," SciencePo Working papers Main hal-03403065, HAL.
    3. Barbara Bratta & Livio Romano & Paolo Acciari & Francesca Mazzolari, 2020. "The Impact of Digitalization Policies. Evidence from Italy�s Hyper-depreciation of Industry 4.0 Investments," Working Papers wp2020-6, Ministry of Economy and Finance, Department of Finance.
    4. repec:spo:wpmain:info:hdl:2441/7mboadgfvr8h3avm8s867a2rtf is not listed on IDEAS
    5. repec:hal:spmain:info:hdl:2441/7mboadgfvr8h3avm8s867a2rtf is not listed on IDEAS
    6. repec:spo:wpmain:info:hdl:2441/59b98fs2bu8neb8h5au501rtll is not listed on IDEAS
    7. repec:hal:spmain:info:hdl:2441/59b98fs2bu8neb8h5au501rtll is not listed on IDEAS

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:oec:ctpaaa:27-en. 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: the person in charge (email available below). General contact details of provider: https://edirc.repec.org/data/ctoecfr.html .

    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.