(January 12, 2015) 

On January 6, 2015 the European Commission published TAXATION PAPER  N. 52 - 2014: A Study on R&D Tax Incentives - Final report. The paper is written by CPB (Netherlands Bureau for Economic Policy Analysis) in consortium with: CAPP, CASE, CEPII, ETLA, IFO, IFS, HIS.

The paper a.o. discusses the following topics:

• Introduction
• R&D tax incentives and the innovation policy mix
• Main findings from the overview of R&D tax incentives
• Main findings from the literature survey
• Main findings on best practices
• Impact of R&D tax credits and allowances
• Impact on R&D expenditure
• Impact on innovation and productivity
• Tax incentives versus direct subsidies
• General welfare effects
• Corporate taxation and the location of R&D activity and patents
• Challenges for evaluation
• R&D tax incentives in the EU and selected OECD countries
• Scope
• Type of R&D tax incentive
• Incremental and volume-based schemes
• Incentive base
• Tax base
• Novelty of R&D outcome
• Targeting
• Explicit targeting
• Implicit targeting
• Organization
• Generosity
• Administration
• Benchmarking R&D tax incentive designs
• Principles of good practice
• Methodology
• Benchmarking results
• Data availability
• Limitations of benchmarking
• Summary of good practice cases
• Conclusions

To be forwarded to the Taxation Paper as published on the website of the European Commission, click here. The website of the European Commission will open in a new window.

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