We analyze behavioral additionality effects related to wage-based R&D tax credits and their dependence on the joint use of R&D subsidies. Using a matching approach combined with multivariate probit analyses on survey data of Belgian firms in 2006-2010, we find that tax credits cause firms not to...

This policy report provides an overview of firm R&D support policies used by European countries, reviews the empirical evidence on the effectiveness of these policies, and discusses implications for policy. Existing literature suggests that firm R&D support policies stimulate private R&D within...