Tax burden on open innovation: the case of the automotive industry in Brazil

Gondim, Igor Jordano Cassemiro; Borini, Felipe Mendes; Cunha, Júlio Araujo Carneiro da

doi:10.1504/ijatm.2017.086409

Cited by 4 publications

(2 citation statements)

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“…This leads to the conclusion that fiscal incentives will be more likely to stimulate R&D activities in established firms than in young firms (Busom et al, 2014). Other studies (d' Andria et al, 2018;Chiang et al, 2012;Gondim et al, 2017;Govindaraju et al, 2013;Jose et al, 2019;Mazzarol et al, 2010) suggest age-accumulated experience as one of the factors affecting the intensity of R&D activities and consequently innovation capacity.…”

Section: Structural Model and Research Hypothesesmentioning

confidence: 98%

R&D tax incentives and innovation: unveiling the mechanisms behind innovation capacity

Walter

Au‐Yong‐Oliveira

Veloso

et al. 2022

JAMR

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PurposeThere is a scarcity of empirical evidence in the literature on the chain of causality involving tax incentives for Research and Development (R&D) activities and their subsequent transformation into innovation. This study aims to assess the influence of R&D tax incentives on the organizational attributes of Portuguese firms to identify how they are converted into innovation.Design/methodology/approachA structural research model consisting of 339 companies that benefited from the Fiscal Incentive System supporting R&D in Enterprises, during the period from 2013 to 2016, was developed. This was done to assess the role of R&D tax incentives on the organizational attributes that form the innovation capacity. The model was validated using the multivariate statistical technique of structural equation modeling with partial least squares estimation (partial least squares structural equation modeling – PLS-SEM).FindingsThe results found suggest that although it is not possible to unequivocally identify the mechanisms used to convert tax incentives into innovation, it is possible to conclude that they play an important spillover effect for the construction and strengthening of organizational attributes. These form the basis of innovation capacity, to the extent that they positively influence the firms’ total assets, equity, liabilities, number of employees and sales. Hence, contributions are brought to both the literature on tax incentives and the general literature on innovation.Originality/valueFor policymakers, the evidence points to the fact that in addition to the incentives provided, novel mechanisms need to be established to help firms develop their absorptive capacity. The objective is to effectively convert the incentives received into innovation through the organizational attributes analyzed. From the firms’ point of view, the results found suggest that tax incentives act as a catalyst for making R&D investments. Additionally, there is an influence on employability, which effectively enhances the chances of innovation in the long run. Tax incentives received by Portuguese firms also have the effect of promoting economic dynamism – by enhancing the following: investments in infrastructure, the hiring of employees and the increasing of sales, generating positive externalities for both firms and society.

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Section: Structural Model and Research Hypothesesmentioning

confidence: 98%

R&D tax incentives and innovation: unveiling the mechanisms behind innovation capacity

Walter

Au‐Yong‐Oliveira

Veloso

et al. 2022

JAMR

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“…Some recommendations were proposed, including the creation of an innovation ecosystem consisting of industry, academia, government, and private business, and a new intellectual properties model, etc. By performing a survey with 130 automotive subsidiaries in Brazil, Gondim et al (2017) found that a high distance of taxes increases the likelihood of the adoption of OI.…”

Section: Research Hotspotsmentioning

confidence: 99%

Open Innovation: A Research Framework and Case Study of Huawei

Zhang

et al. 2023

Technological and Economic Development of Economy

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Open innovation (OI) has received significant attention from practices and theories over the past decades. This paper investigates the role of OI and personalized patterns in firms at home and abroad, and then measures the risks involved. Firstly, this paper reviews the definition of OI, the business model innovation characteristics, and the facing problems in practice. Based on the existing literature, we illustrate the openness and challenges of business OI. By introducing bibliometrics, this paper presents a whole research framework. Based on keywords cooccurrence analysis and clustering analysis, we locate the current research hotspots and potential research opportunities from a comprehensive perspective. According to the analysis results, five clusters are obtained, including resource management and value creation; collective innovation and form sustainability; innovation management, intellectual property management, and crossborder cooperation; knowledge management and knowledge sharing; innovation ecosystem, big data, and policy-level innovation. Taking Huawei as an example, its typical business OI model is studied from the perspectives of organizational, project-related, marketing and consumer-based, and summaries the facing challenges and risks. We illustrate its financial performance, innovation performance, and development prospects. We found that, during the implementation of OI practical activities and theoretical exploration, the risks and opportunities facing small and medium-sized enterprises (SMEs) are multiple dimensional.

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The Use of Internal Resources for the Creation of Innovation: An Empirical Analysis of Portuguese Companies Benefiting From Tax Incentives for Research and Development

Walter

Au‐Yong‐Oliveira

Ferasso

et al. 2022

Int. J. Innovation Technol. Management

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Comparing companies solely based on tax incentives for R&D activities can be misleading. Hence, this research aims to assess how Portuguese companies that make use of tax incentives for R&D activities on an ongoing basis behave in terms of promoting and appropriating value through innovation. From an initial population of 3,156 companies, a final database with 339 Portuguese companies that made use of fiscal credits from 2013 to 2016 was analyzed. The tax incentive program targeted was the Fiscal Incentive System supporting R&D in Enterprises (SIFIDE). Using the analysis of variance (one-way ANOVA), the main results suggest that, considering the internal resources, there are no statistically significant differences between the promotion and appropriation of value through innovation according to the size and age of companies. The data indicate that good management regarding the generation and implementation of innovations may occur independently of size and age of firms, in the Portuguese case. Albeit the averages of the indicators of value appropriation of the intangible (e.g. patents, trademarks, and new processes), and the efficiencies of assets and liabilities for the promotion of the intangible are different according to the level of technological intensity. These results point to the need to reevaluate the tax incentives for R&D activities, since its generic nature may not meet the different innovation needs arising from the distinctive characteristics of these enterprises and their technological dynamics. Implications and future research directions are provided.

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Tax burden on open innovation: the case of the automotive industry in Brazil

Cited by 4 publications

References 0 publications

R&D tax incentives and innovation: unveiling the mechanisms behind innovation capacity

R&D tax incentives and innovation: unveiling the mechanisms behind innovation capacity

Open Innovation: A Research Framework and Case Study of Huawei

The Use of Internal Resources for the Creation of Innovation: An Empirical Analysis of Portuguese Companies Benefiting From Tax Incentives for Research and Development

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