Tax Incentives for R&D

Irem Guceri, Ruzica Rakic

Using the tax system to support research and development has become a very popular policy tool. Many countries are implementing incentives such as tax credits, patent boxes and direct subsidies to stimulate new R&D. But is there really a causal relationship between these policies and the R&D spending done by the businesses receiving the incentives? And if so, is this R&D productive, and does it have an impact on the wider economy? For our joint lunch debate with CEPS, we presented the latest research into this area. İrem Güçeri (EconPol Europe, Saïd Business School at the University of Oxford), Ruzica Rakic (DG Research & Innovation, European Commission) and journalist Jennifer Baker discuss: is there an optimal policy mix for incentivizing R&D?


Jennifer Baker, İrem Güçeri Ruzica Rakic, "Tax Incentives for Research and Development: Is There an Optimal Policy Mix?", CEPS EconPol Europe Lunch Debate, 10 July 2020, video