The Effect of Tax Credits for R&D Expenditure Policy on Firms R&D Expenditure—A Comparison Perspective of Policy Tool
- 10.2991/aebmr.k.201211.051How to use a DOI?
- Tax credits policy, internal and external R&D expenditure, crowding-in and crowding-out effects
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.
- © 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/).
Cite this article
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 -