Dynamics of firm participation in R&D tax credit and subsidy programs
Busom i Piquer, Isabel (Universitat Autònoma de Barcelona. Departament d'Economia Aplicada)
Martínez Ros, Ester
Corchuelo Martínez-Azua, Beatriz
Universitat Autònoma de Barcelona. Departament d'Economia Aplicada

Publicación:	Universitat Autònoma de Barcelona. Departament d'Economia Aplicada 2015
Descripción:	35 p.
Resumen:	We provide comparative evidence on R&D tax credit and subsidy programs by studying whether firms' participation in each program exhibits state dependence and whether cross program interactions exist and are significant. We use a panel of manufacturing Spanish firms, which could use both types of support, to estimate a random effects bivariate dynamic probit model of program participation. We find that true state dependence of participation in R&D subsidy and tax credit programs accounts respectively for about 55% and 60% of observed persistence. In contrast, we do not find evidence of cross program interaction, suggesting that each tool is used by firms with different profiles. Digging on the role of some observable variables, we find that both programs reach on average stable R&D performers, and that they do not foster participation of young firms relative to older ones. We also identify significant differences across programs: while diversified and commercially successful firms are more likely to use tax incentives, those with high productivity are more likely to obtain subsidies. We discuss some policy implications of these findings.
Derechos:	Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades.
Lengua:	Anglès
Colección:	Departament d'Economia Aplicada. Documents de treball
Colección:	Document de treball (Universitat Autònoma de Barcelona. Departament d'Economia Aplicada) ; 1503
Documento:	Working paper
Materia:	Empreses ; Innovacions tecnològiques ; R&D ; Innovation policy ; Tax incentives ; Subsidies ; Persistence ; Dynamic random effects ; Bivariate probit

35 p, 319.1 KB

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Documentos de investigación > Working papers > Departamento de Economía Aplicada. Documentos de trabajo