Will the real RandD employees please stand up Effects of tax breaks on firm level outcomesReport as inadecuate




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Reference: Guceri, I, (2017). Will the real R&D employees please stand up? Effects of tax breaks on firm level outcomes. International Tax and Public Finance.Citable link to this page:

 

Will the real R&D employees please stand up? Effects of tax breaks on firm level outcomes

Abstract: This paper evaluates the effect of tax incentives for research and development(R&D) on R&D spending and employment of R&D staff in a quasi-experimental setting.To do this, I exploit an exogenous reform in UK R&D tax policy, which changedthe definition of an SME from firms with fewer than 250 employees to those with fewerthan 500 employees. I use the UK Business Enterprise Research and DevelopmentSurvey (BERD), for which companies do not have an incentive to relabel their ordinaryemployees or spending as R&D. I find that R&D tax incentives help to increaseR&D spending at the company level; this translates to a user cost elasticity between-0.88 and -1.18. Further, the additional R&D generated through the tax relief can beattributed entirely to an increase in the number of R&D employees in the companies’workforce. Together, these results challenge a common narrative on the role of R&Dtax incentives

Publication status:PublishedPeer Review status:Peer reviewedVersion:Publisher's versionDate of acceptance:07 January 2017Notes:Copyright © 2017 The Author.This article is distributed under the terms of the Creative Commons Attribution 4.0 International License (http://creativecommons.org/licenses/by/4.0/), which permits unrestricted use, distribution, and reproduction in any medium, provided you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license, and indicate if changes were made.

Bibliographic Details

Publisher: Springer US

Publisher Website: http://www.springer.com/

Journal: International Tax and Public Financesee more from them

Publication Website: http://link.springer.com/journal/10797

Issue Date: 2017Identifiers

Issn: 0927-5940

Eissn: 1573-6970

Uuid: uuid:b8793765-184a-4a94-a76e-c4eca96b1769

Urn: uri:b8793765-184a-4a94-a76e-c4eca96b1769

Pubs-id: pubs:668444

Doi: https://doi.org/10.1007/s10797-017-9438-3 Item Description

Type: journal-article;

Version: Publisher's versionKeywords: R&D tax credits quasi-experiment difference-in-differences

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Author: Guceri, I - Oxford, SSD, Said Business School fundingEconomic and Social Research Council grantNumberES-L000016-1 - - - - Bibliog

Source: https://ora.ox.ac.uk/objects/uuid:b8793765-184a-4a94-a76e-c4eca96b1769



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