The Effect of Tax Credits for R&D Expenditure Policy on Firms R&D Expenditure—A Comparison Perspective of Policy Tool

DOI

10.2991/aebmr.k.201211.051How to use a DOI?

Keywords

Tax credits policy, internal and external R&D expenditure, crowding-in and crowding-out effects

Abstract

This paper investigates the analysis model of crowding in and out for tax credits for R&D expenditure to firms’ R&D expenditure. Based on enterprises above designated size in Dalian, the different effects of fiscal technology investment funds, high-tech enterprise tax reduction and tax credits for R&D expenditure policies on corporate R&D internal and external expenditures based on Agosin and Mayer (2005)’s model are compared and analyzed. The results show that among the three policy instruments, the tax credits for R&D expenditure policy has the strongest impact on the internal and total R&D expenditure, while the combined impact of the other two policy instruments is weakened. The impact of tax credits for R&D expenditure on firm internal expenditures is not significant. Tax credits policy exerts the weakest crowding out effect on R&D expenditures of enterprises.

Copyright

© 2020, the Authors. Published by Atlantis Press.

Open Access

This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).

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TY  - CONF
AU  - Xiaoxian Song
AU  - Bo Zhang
AU  - Jintao Liu
PY  - 2020
DA  - 2020/12/14
TI  - The Effect of Tax Credits for R&D Expenditure Policy on Firms R&D Expenditure—A Comparison Perspective of Policy Tool
BT  - Proceedings of the Fifth International Conference on Economic and Business Management (FEBM 2020)
PB  - Atlantis Press
SP  - 303
EP  - 310
SN  - 2352-5428
UR  - https://doi.org/10.2991/aebmr.k.201211.051
DO  - 10.2991/aebmr.k.201211.051
ID  - Song2020
ER  -