Tax credits and small firm R&D spending
By: Agrawal, Ajay, Rosell, Carlos and Simcoe, Timothy
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Material type: 
BookPublisher: American Economic Journal Economic Policy Description: 12(2), May, 2020: p.1-21.
In:
American Economic Journal Economic PolicySummary: 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. – Reproduced
| Item type | Current location | Call number | Status | Date due | Barcode |
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Articles
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Indian Institute of Public Administration | Available | AR124311 |
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. – Reproduced
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