Cookies?
Library Header Image
LSE Research Online LSE Library Services

Do R&D tax credits work? Evidence from a panel of countries 1979-1997

Bloom, Nick and Griffith, Rachel and Van Reenen, John (2002) Do R&D tax credits work? Evidence from a panel of countries 1979-1997. Journal of Public Economics, 85 (1). pp. 1-31. ISSN 0047-2727

Full text not available from this repository.
Identification Number: 10.1016/S0047-2727(01)00086-X

Abstract

This paper examines the impact of fiscal incentives on the level of R&D investment. An econometric model of R&D investment is estimated using a new panel of data on tax changes and R&D spending in nine OECD countries over a 19-year period (1979–1997). We find evidence that tax incentives are effective in increasing R&D intensity. This is true even after allowing for permanent country-specific characteristics, world macro shocks and other policy influences. We estimate that a 10% fall in the cost of R&D stimulates just over a 1% rise in the level of R&D in the short-run, and just under a 10% rise in R&D in the long-run.

Item Type: Article
Official URL: http://www.elsevier.com/wps/find/journaldescriptio...
Subjects: H Social Sciences > HJ Public Finance
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 27 Apr 2007
Last Modified: 01 Oct 2010 08:45
URI: http://eprints.lse.ac.uk/id/eprint/1353

Actions (login required)

View Item View Item