FF 2013, afl. 238 - A comparison of tax credits and tax allowances stimulating research and development
Aflevering 238, gepubliceerd op 01-10-2013 geschreven door Msc. R.O.F. BakkerAs the financial crisis is still going onwards from 2008, governments and supranational institutions try different ways to stimulate research and development. The European Union provided a paper discussing several methods to increase economic growth. The paper State of the Innovation Union (2011)European Union, ‘State of the Innovation Union’, Report from the Commission to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Region, Brussels 2011. increasing innovation is regarded as the most important measure in making Europe more robust to the crisis, increasing the total level of employment and increasing economic growth in the European sector. This article contributes to the quest of finding the best type of tax incentive stimulating research and development. Tax incentives stimulating research and development have been discussed for several decades now, focusing on the difference between direct government support (subsidies) and indirect government support (tax incentives) and the effect of tax incentives in general. The results of past research will be discussed in section 1. Section 2 will focus on the design of the research, while section 3 discusses the limitations of the research. At last section 4 will discuss the results of the research.