Sectors and the additionality effects of R&D tax credits: A cross-country microeconometric analysis

Abstract

Do the additionality effects of R&D tax credits vary across sectors? The paper presents a micro- econometric analysis of this question for three countries: Norway, Italy and France. We use a panel of firm-level data from three waves of the Innovation Surveys carried out in these countries for 2004, 2006 and 2008. The study estimates input and output additionality effects of R&D tax credits in each of these economies, and it investigates how these effects differ across sectors characterized by different R&D orientation and competition conditions. The results point out that firms in industries with high R&D orientation have on average higher propensity to apply to R&D fiscal incentives schemes and stronger input and output additionality effects. Output additionality is found to differ among the three examined countries. Freitas, Isabel Bodas, et al. "Sectors and the additionality effects of R&D tax credits: A cross-country microeconometric analysis." Research Policy 46.1 (2017): 57-72. © 2017. This manuscript version is made available under the CC-BY-NC-ND 4.0 license.