Tax Credits and Small Firm R&D Spending

• 成果类型: Article
• 署名作者: Agrawal, Ajay; Rosell, Carlos; Simcoe, Timothy
• 署名单位: University of Toronto; National Bureau of Economic Research; Boston University
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20140467
• 发表日期: 2020
• 页码: 1-21
• 关键词: size; INVESTMENT; incentives; INNOVATION; DYNAMICS; income; panel

摘要

In 2004, Canada changed the eligibility rules for its Scientific Research and Experimental Development (SRED) tax credit, which provides tax incentives for R&D conducted by small private firms. Difference-in-difference estimates show a 17 percent increase in total R&D among eligible firms. The impact was larger for firms that took the tax credits as refunds because they had no current tax liability. Contract R&D expenditures were more elastic than the R&D wage bill. The response was also greater for firms that invested in R&D capital before the policy change.