A Framework for Evaluating Provincial R&D Tax Subsidies
Bibliographic Data
| ID | 11969997 |
|---|---|
| Authors | Bev Dahlby (corresponding author) |
| Year | 2005 |
| Volume | 31 |
| Issue | 1 |
| Pages | 45-45 |
| Publication date | 2005-03-01 |
| Open Access | No |
| Type | ARTICLE |
| Venue | Canadian Public Policy (JOURNAL) |
| Journal identifiers | ISSN: 0317-0861 • E-ISSN: 1911-9917 |
| Publisher | JSTOR (PUBLISHER) |
| DOI | 10.2307/3552594 |
| OpenAlex | W1994419374 |
| Language | EN |
| Citations received | 5 |
| References cited | 5 |
The spillover effects from a firm's research and development (R&D) activities provide a rationale for R&D tax incentives. This paper provides a framework for incorporating the external rate of return on R&D, the tax sensitivity of R&D spending, and the government's marginal cost of public funds in the evaluation of provincial R&D incentive programs. Using this framework, we find that an additional dollar of tax incentive has to generate close to $2.00 of additional R&D and the external rate of return has to be very close to 30 percent in order to justify a provincial tax subsidy for R&D if the provincial government's marginal cost of funds is $1.40
Business · Economics · Market economy · Public economics · Subsidy · Economic Growth and Productivity · Firm Innovation and Growth · Innovation Policy and RD
| Citations per year | 0.24 |
|---|---|
| Citation span | 2005 - 2020 (16) |
| Highly cited | No |