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...

New Zealand is unique in the OECD. It had an R&D tax credit but it was only in force for one tax year. There are currently no plans in place to reintroduce such a credit. There are, though, a number of provisions in the tax code that are R&D incentives in the strict sense of the term. While...

According to theory, direct R&D grants should be used for projects with low private returns, high social returns and high risk. R&D tax credits, on the other hand, allow firms to choose projects freely according to their private returns. Building on the standard R&D capital model, I develop a...

Research and development (R&D) tax credits are widely employed among the OECD countries to promote business sector investments in innovation. The implementation of R&D tax credit schemes, however, varies across countries. The empirical research on the effectiveness of R&D tax incentives suggests...

This report is one of four analytical pieces on Ukraine's innovation and entrepreneurial ecosystem developed by the World Bank's Ukraine Technical Assistance on Innovation, supported by the Swedish Ukraine Financial and Enterprise Sector Recovery and Growth Trust Fund. This report reviews...