Neubig, T., et al. (2016), "Fiscal incentives for R&D and innovation in a diverse world", OECD Taxation Working Papers, No. 27, OECD Publishing, Paris.
DOI:
http://dx.doi.org/10.1787/5jlr9stckfs0-en
Public
policy has an important role to play in promoting research and
development (R&D) the development, diffusion, and use of new
knowledge and innovations. Fiscal incentives, including tax policies,
should be directed at specific barriers, impediments or synergies to
facilitate the desired level of investment in R&D and innovations.
Without careful design, policies can have unintended consequences such
as favouring incumbent firms, encouraging small firms to undertake less
efficient activities, or creating arbitrage and rent-seeking activity.
R&D tax policy needs to be considered in the context of the
country’s general tax policies, its broader innovation policy mix and
its other R&D support policies. More R&D activity in one country
does not necessarily result in an overall increase in global innovation
if it is simply shifted from another country. More research is needed
to determine the extent to which R&D fiscal incentives in one
country increase overall R&D, the quality of that R&D, and its
positive spillovers to other sectors of the economy and other countries.
Posty
