We find that the Norwegian R&D tax credit scheme introduced in 2002 mainly works as intended. The scheme is cost-effective and it is used by a large number of firms. It stimulates these firms to invest more in R&D, and, in particular, the effect is positive for small firms with little R&D...

An indicator of allocation effects of industrial policy is derived from a theoretical framework of monopolistic competition. The indicator gives a qualitative picture of how industrial policy affects industry structure and resource allocation, it identifies the policy measures that work as...