Quebec's tax incentives act as a magnet to research companies

Tax Incentives to Encourage

Much has been said about the importance of innovation, especially after the rise of globalization and implementation of more open markets. In this paper, we will show how innovation is linked to schools of thoughts that sought to explain and understand what would lead nations to reach a certain degree of long-term development, since the model of Joseph Schumpeter in the mid-1930s until Romer’s ...

Unionization triggers tax incentives to attract FDI

This paper examines tax competition between a unionized and a nonunionized country for the location of an outside firm. We show that unionization offers an extra incentive for the government to attract a foreign competitor to a concentrated domestic market, in order to limit the power of the domestic union. This results in the unionized country’s government offering a tax discount (or a subsidy...

R&D Tax Incentives

Main findings: • Level-based R&D tax credits are subject to a serious deadweight loss. • Increment-based R&D tax credits are not subject to that deadweight loss, but have their own deficiencies. • The bulk of the empirical evidence concludes that there is no crowding-out but also little additionality. • R&D tax incentives have the advantage of being neutral, less costly to administer, and more ...

Do Financial Incentives Increase Doctors’ Willingness to Publish Research? – A Pilot Study of 21 Junior Doctors

A Model of R&D Tax Incentives

This paper examines R&D tax incentives in oligopolistic markets. It is generally agreed that R&D has some characteristics of a public good. Therefore, the market will fail to provide a sufficient amount of R&D. A tax incentive for R&D can be implemented by the government to fix this market failure. However, the controversy over the effectiveness of R&D tax incentives is still considerable. In t...