Do tax incentives for research increase firm innovation ? An RD Design for R & D March 21 st 2017

@inproceedings{Dechezleprtre2017DoTI,
  title={Do tax incentives for research increase firm innovation ? An RD Design for R & D March 21 st 2017},
  author={Antoine Dechezlepr{\^e}tre and Elias Eini{\"o} and K. Nguyen and John Van Reenen},
  year={2017}
}
We present evidence of a causal impact of research and development (R&D) tax incentives on innovation. We exploit a change in the asset-based size thresholds for eligibility for R&D tax subsidies and implement a Regression Discontinuity Design using administrative tax data on UK firms. There are statistically and economically significant effects of the tax… CONTINUE READING