The effectiveness of tax incentives for R&D+i in developing countries: The case of Argentina

Are corporate tax incentives for investment fit for purpose? Revisiting economic principles and evidence from low- and middle-income countries

“…Yang et al (2012) find a relatively small marginal effect for Taiwanese firms receiving tax credits (between 0.094 and 0.120), although the effects are greater as the tax credit expires. In their study of Argentinean firms, Crespi et al (2016) find that the elasticity of the combined investment in R&D and capital goods (R&D+i) is greater than one.…”

“…Therefore, using the findings in these countries for policy recommendations in lower-income countries should be avoided, or done very carefully. There are many constraints to the effectiveness of R&D tax incentives linked to tax administration capacities, and supply-side factors (e.g., infrastructure and skilled workforce to conduct R&D) which are likely to make these policies less effective in low-income contexts (see Crespi et al, 2016). The evidence showing that impacts are more significant for technologically advanced firms further points to the importance of economic conditions in determining the importance of these policies.…”

Input, Output, and Behavioral Additionality of Innovation Subsidies

“…However, in the case of developing countries, the lack of micro-data has not allowed additionalities to be studied sequentially. However, it is possible to find some valuable examples for developing countries, especially in the case of Latin America as it can be seen in Sanguinetti (2005), Chudnovsky et al(2006), and Crespi et al(2016) for Argentina; Fernández-Sastre and Martín-Mayoral (2015) in the case of Ecuador; Tello (2015) for Peru; Aboal and Garda (2015) in Uruguay; Crespi et al(G. Crespi et al, 2015), Busom and Vélez-Ospina (2017), and Barrios, Forero and Perry (2018) for the case of Colombia, and the literature review of Crespi and Maffioli (2014) for all Latin America.Methodology It is possible to see that literature about innovation subsidies additionalities has been overlooked; first, the effects of subsidies on other variables different from the ones measuring input additionalities. Second, the long-term effects of subsidies on firms.…”

Institutional and organizational conditions of innovation development in the Russian region: The experience of the Republic of Tatarstan

“…Обзор литературы по теме исследования выявил, что для стимулирования инновационной активности в регионе необходимо выполнение следующих условий: обеспечение прямого бюджетного финансирования и налогового стимулирования [Гохберг, Китова, Рудь, 2014;Симачев, Кузык, Зудин, 2017;Crespi et al, 2016;Bösenberg, Egger, 2017]; достижение высокого качества человеческого капитала [Sleuwaegen, Boiardi, 2014]; наличие инновационной инфраструктуры [Vásquez-Urriago, Barge-Gil, Rico, 2016]; доступность венчурного финансирования [Гштраунталер, Сагиева, 2011;Popov, Roosenboom, 2012;Bertoni, Tykvova, 2015;Cumming, Grilli, Murtinu, 2017;Pellegrino, Savona, 2017]; результативность региональной инновационной политики [Asheim, Isaksen, 1997;Cooke, Uranga, Etxebarria, 1997].…”