Effectiveness of R&D tax incentives in small and large enterprises in Québec
Bibliographic Data
| ID | 14867708 |
|---|---|
| Authors | Rufin Baghana (Ministère de l'Économie et des Finances, corresponding author), Pierre Mohnen (0000-0002-2289-7379, Center for Interuniversity Research and Analysis on Organizations) |
| Year | 2009 |
| Volume | 33 |
| Issue | 1 |
| Pages | 91-107 |
| Publication date | 2009-06-01 |
| Open Access | Yes |
| Type | ARTICLE |
| Venue | Small Business Economics (JOURNAL) |
| Journal identifiers | ISSN: 0921-898X • E-ISSN: 1573-0913 |
| Publisher | Springer Science and Business Media LLC (PUBLISHER) |
| DOI | 10.1007/s11187-009-9180-z |
| OpenAlex | W2118909214 |
| Language | EN |
| Citations received | 12 |
| References cited | 14 |
In this paper we evaluate the effectiveness of R&D tax incentives in Quebec, using manufacturing firm data from 1997 to 2003 originating from R&D surveys, annual surveys of manufactures and administrative data. The estimated price elasticity of R&D is –0.10 in the short run and –0.14 in the long run, with slightly higher elasticities for small firms than for large firms. We show that there is a deadweight loss associated with level-based R&D tax incentives that is particularly acute for large firms. For small firms it is not sizeable enough to suppress the R&D additionality, at least not for quite a number of years after the initial tax change. Incremental R&D tax credits do not suffer from this deadweight loss and are from that perspective preferable to level-based tax incentives
Additionality · Deadweight loss · Economics · Incentive · Market economy · Microeconomics · Monetary economics · Public economics · Tax credit · Tax incentive · Welfare · Firm Innovation and Growth · Fiscal Policy and Economic Growth · Innovation Policy and RD
Industrialisation as an engine of growth in developing countries, 1950–2005
From market fixing to market-creating
Public R&d Policies and Private R&d Investment
Does persistence in using R&D tax credits help to achieve product innovations
R&D Tax Incentive Reforms Around the World
Aides à la R&D
Effectiveness of fiscal incentives for innovation
The effect of R&D subsidies and tax incentives on employment
R&D tax incentives in EU countries
How young firms achieve growth
Effect of R&D tax credits for SMEs in Japan
Effects of Industrial Policy on Firms' Innovation Outputs
| Citations per year | 0.86 |
|---|---|
| Citation span | 2012 - 2025 (14) |
| Highly cited | No |