R&D tax credits and their macroeconomic impact in the EU: an assessment using QUEST III
R&D tax credits are currently used by 25 Member States as a means to stimulate R&D investment and, ultimately, economic growth and employment. This paper is a first attempt to provide an in-depth analysis of the structural economic factors that, other things equal, affect or condition the potential macroeconomic impacts of expanding (or start implementing) R&D tax credit schemes. The analysis is based on the European Commission's QUEST III semi-endogenous growth model. Our main conclusion is that, while the short and medium-term impacts of increased R&D tax credits on Member States' GDP and other macroeconomic aggregates are overall significantly positive, there remains space to substantially improve the cost-effectiveness of these policies.
SANCHEZ MARTINEZ Miguel;
BENEDETTI FASIL Cristiana;
CHRISTENSEN Peder;
ROBLEDO BOTTCHER Nicolas;
2017-12-20
Publications Office of the European Union
JRC108931
978-92-79-75763-1,
1831-9424,
EUR 28858 EN,
OP KJ-NA-28858-EN-N,
https://publications.jrc.ec.europa.eu/repository/handle/JRC108931,
10.2760/6922,
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