Evaluation of the Norwegian R&D Tax Credit Scheme

Authors

  • Ådne Cappelen
  • Erik Fjærli Statistics Norway
  • Torbjørn Hægeland Statistics Norway
  • Frank Foyn Statistics Norway
  • Jarle Møen Norwegian School of Economics and Business Administration
  • Arvid Raknerud Statistics Norway
  • Marina Rybalka Statistics Norway

DOI:

https://doi.org/10.4067/S0718-27242010000300007

Keywords:

R&D tax credit, R&D subsidies, Innovation policy, Norway

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.

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Author Biographies

Ådne Cappelen

Senior Researcher, Research Department, Statistics Norway

Erik Fjærli, Statistics Norway

Researcher, Research Department, Statistics Norway

Torbjørn Hægeland, Statistics Norway

Director of Research

Research Department

Statistics Norway

Frank Foyn, Statistics Norway

Senior adviser

Department of Economic Statistics

Statistics Norway

Jarle Møen, Norwegian School of Economics and Business Administration

Professor

Department of Finance and Management Science

Norwegian School of Economics and Business Administration

Arvid Raknerud, Statistics Norway

Head of division

Research Department

Statistics Norway

 

Marina Rybalka, Statistics Norway

Junior Researcher

Research Department

Statistics Norway

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Published

2010-11-04

How to Cite

Cappelen, Ådne, Fjærli, E., Hægeland, T., Foyn, F., Møen, J., Raknerud, A., & Rybalka, M. (2010). Evaluation of the Norwegian R&D Tax Credit Scheme. Journal of Technology Management & Innovation, 5(3), 96–109. https://doi.org/10.4067/S0718-27242010000300007

Issue

Section

Research Articles