Recent years have seen an unprecedented increase in the provision of R&D tax incentives. A growing empirical literature … suggests that R&D tax incentives are instrumental in raising domestic R&D activity. In policy debates this finding is often … interpreted to lend support to the notion that R&D tax incentives increase national welfare by internalizing knowledge spillovers …

A strong innovation performance based on R&D, product development and the implementation of advanced production … offshoring on R&D and innovation activities of the firm in the home country. The analysis is based on a dataset of more than 3000 … manufacturing firms from seven European countries. We employ propensity score matching to compare R&D and innovation activities of …