SOTA59-R&D tax credits verses R&D grants Nana-Cheraa

But how effective is R&D tax credit in promoting an increase in R&D activities verses R&D grants? What are the contextual factors which inform or moderate the relative impact of tax credits and grants? The purpose of this SOTA Review is to answer these questions drawing on the research evidence. [...] 2 Table 1: Post-2014 studies on input additionality effect of tax credits and grants Author(s) Country and Policy Innovation Key findings sample instruments input details measure (s) Lenihan, Panel: R&D grants; R&D (1) R&D grants or R&D tax credits in Mulligan, Administrative R&D tax expenditure isolation have a positive and Perez-Alaniz data and credits; significant effect on R&D, although tax &. [...] effect on all the types of R&D investment than the effect of tax credit and grants in isolation. [...] Neicu, 177 Belgian R&D grants Number of Policy mix is more effective than tax Teirlinck & firms; R&D tax R&D projects; credits in isolation for additionalities in Kelchtermans Cross- credits Scale of R&D R&D efforts: Relative to tax-credits-only, (2016) sectional projects; policy mix increases the number of R&D (2010) Speed of projects by 21%, speed up R&D projects R&D projects; by 24%, increases. [...] The (2008) effect is 9.4 percentage points for a policy mix of grant and tax credit, 21.9 percentage points for a mix of grant and public procurement, and 28.8 percentage point for a mix of public procurement and tax credits; Individually, public procurement is more effective than the other policy instruments.