Evaluation of the Norwegian R&D tax credit scheme

Ådne Cappelen, Erik Fjærli, Frank Foyn, Torbjørn Hægeland, Jarle Møen, Arvid Raknerud and Marina Rybalka

Discussion Papers from Statistics Norway, Research Department

Abstract: We find that the Norwegian R&D tax credit scheme introduced in 2002 mainly works as intended. The scheme is cost-effective and it is used by a large number of firms. It stimulates these firms to invest more in R&D, and, in particular, the effect is positive for small firms with little R&D experience. The returns on the R&D investments supported by the scheme are positive and generally not different from the returns to other R&D investments. We have found examples of what can be interpreted as tax motivated adjustments to the scheme, but to some extent this must be accepted as a cost to subsidy and support schemes intended for use by a large number of economic agents. This is particularly so when attempts are made to keep administrative expenditures and control routines at a low level.

Keywords: R&D tax credit; R&D subsidies; Innovation policy; Norway (search for similar items in EconPapers)
JEL-codes: H25 O38 (search for similar items in EconPapers)
Date: 2010-12
New Economics Papers: this item is included in nep-eur, nep-ino, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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Persistent link: https://EconPapers.repec.org/RePEc:ssb:dispap:640

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