Template-type: ReDif-Paper 1.0
Author-Name: Labeaga Azcona J. 
Author-Name: Martínez-Ros E. 
Author-Name: Mohnen P. 
Author-workplace-name: UNU-MERIT
Title: Tax incentives and firm size : effects on private R&D investment in Spain
Abstract: The use of fiscal policy instruments to stimulate private RD is widespread and important in some countries like Spain. In this paper we explore the effectiveness of RD tax incentives on knowledge capital accumulation in Spanish manufacturing firms using an unbalanced panel and compare the estimates based on claimed and claimable tax reductions. We find that while large firms use the programme more than small ones, the impact of the programme measured by the price elasticity is smaller for large firms than for SMEs. The price elasticities are higher when the ex-ante claimable tax reductions rather than the ex-post actually claimed tax eductions are used to compute the user cost of RD.
Keywords: Business Taxes and Subsidies, Fiscal Policies and Behavior of Economic Agents, Management of Technological Innovation and R&D 
Classification-JEL: H25, H32, O32
Series: UNU-MERIT Working Papers
Creation-Date: 2014
Number: 2014-081
File-URL: https://unu-merit.nl/publications/wppdf/2014/wp2014-081.pdf
File-Format: application/pdf
File-Size: 521989
Handle: RePEc:unm:unumer:2014081