The additionality effects of R&D tax credits across sectors: A cross-country microeconometric analysis

19  March 2015    4:00 pm

Fulvio Castellacci, University of Oslo

In cooperation with:
Research Centre International Economics (FIW) 


wiiw, Rahlgasse 3, 1060 Vienna, lecture hall (entrance from the ground floor)


Do the additionality effects of R&D tax credits vary across sectors? The paper presents a microeconometric analysis of this question for three countries: Norway, Italy and France. We use a panel of firm-level data from three waves of the Innovation Surveys carried out in these countries (referring to the years 2004, 2006 and 2008 respectively). The study estimates input and output additionality effects of R&D tax credits in each of these economies, and it investigates how these effects differ across sectors characterized by different R&D orientation and competition conditions. The results point out that firms in industries with high R&D orientation and in sectors with high market concentration are on average more responsive to fiscal incentives to R&D.

Fulvio Castellacci

Fulvio Castellacci presents together with Bodas Freitas I., Fontana R., Malerba F. and Vezzulli A.

Keywords: R&D policy; R&D tax credits; input additionality; output additionality; Pavitt taxonomy; market concentration

JEL classification: H25, H32, O32, O38