R&D Tax Incentives

Wage effects of R & D tax incentives : Evidence from the Netherlands

This paper examines the impact of the Dutch R&D tax incentives program, known as WBSO, on the wages of R&D workers. In our model these wages are partly determined by the government’s WBSO tax disbursements. We construct detailed firmand time specific R&D tax credit rates as a function of the R&D tax incentives scheme to capture the wage effects of the government R&D support. An instrumentalvari...

Expert Group on R&D Tax Incentives Evaluation Comparing Practices in R&D Tax Incentives Evaluation

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...

R&d Tax Incentives: a Reappraisal

This paper examines R&D tax incentives in oligopolistic markets. We characterize the conditions under which tax incentives reach the socially desirable level of firmfinanced R&D spending. The outcome of the market depends not only on the level of technological spillover in the industry but also on the degree of strategic interaction between the firms. One major result emerges from the model: Th...

Tax incentives for innovation: time to restructure the R&E tax credit

The R&E tax credit has never been effective and subsequent attempts to restructure it have not addressed the major deficiencies. Moreover, in the 25 years since the R&E tax credit was enacted, a steadily increasing number of countries have implemented or expanded competing tax incentives, which in many cases are better structured and larger in size. As a result, the relative impact of the US cr...