Better and stronger? : theory and evidence on the effect of R&D tax credits on the trajectory of firms
Autor(a) principal: | |
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Data de Publicação: | 2021 |
Tipo de documento: | Dissertação |
Idioma: | eng |
Título da fonte: | Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
Texto Completo: | http://hdl.handle.net/10400.14/38718 |
Resumo: | This thesis examines the effect of R&D tax credits on the trajectory of firms, in terms of R&D, performance, workforce composition and technology adoption. We elaborate a theoretical model that links the effect of R&D tax credits on firms’ decision to innovate and their differentiated effects based on firm size. Leveraging on the theoretical framework, we then estimate the causal effects of an R&D tax credits program in Portugal using rich micro-data on innovation and firms. By combining matching with a staggered adoption differences-indifferences, we show that tax credits have strong effects on the investment in R&D-related activities, especially at the extensive margin, although the effect is concentrated while funds are being received and not thereafter. Overall, such effect on R&D translates into better firm performance on scale and productivity. Yet, its nature depends heavily on firm size: consistent with different patterns of innovation, small firms exhibit very strong scale effects while large firms see significant productivity and efficiency gains. Importantly, firms that received the tax credits exhibit structural changes, both in terms of the increased share of skilled individuals within the firm and enhanced technological adoption, a finding consistent with the relationship between R&D, innovation and skill-biased technological change. |
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Better and stronger? : theory and evidence on the effect of R&D tax credits on the trajectory of firmsR&DInnovationImpact evaluationFirm performanceScaleProductivitySkill biasTechnologyI&DInovaçãoAvaliação de impactosDesempenhoEscalaProdutividadeQualificaçõesTecnologiaDomínio/Área Científica::Ciências Sociais::Economia e GestãoThis thesis examines the effect of R&D tax credits on the trajectory of firms, in terms of R&D, performance, workforce composition and technology adoption. We elaborate a theoretical model that links the effect of R&D tax credits on firms’ decision to innovate and their differentiated effects based on firm size. Leveraging on the theoretical framework, we then estimate the causal effects of an R&D tax credits program in Portugal using rich micro-data on innovation and firms. By combining matching with a staggered adoption differences-indifferences, we show that tax credits have strong effects on the investment in R&D-related activities, especially at the extensive margin, although the effect is concentrated while funds are being received and not thereafter. Overall, such effect on R&D translates into better firm performance on scale and productivity. Yet, its nature depends heavily on firm size: consistent with different patterns of innovation, small firms exhibit very strong scale effects while large firms see significant productivity and efficiency gains. Importantly, firms that received the tax credits exhibit structural changes, both in terms of the increased share of skilled individuals within the firm and enhanced technological adoption, a finding consistent with the relationship between R&D, innovation and skill-biased technological change.Esta tese examina o efeito dos créditos fiscais de I&D na trajetória das empresas, em termos de I&D, desempenho, composição da força de trabalho da empresa e tecnologia. Desenvolvemos um modelo teórico que identifica o efeito dos créditos fiscais de I&D na decisão das empresas de inovar e o impacto heterogêneo destes incentivos sobre empresas de diferentes tamanhos. Analisamos o efeito causal de um programa de créditos fiscais de apoio ao I&D implementado em Portugal, com dados sobre a inovação ao nível da empresa. Usando técnicas de emparelhamento com diferenças em diferenças, mostramos que os créditos fiscais têm fortes efeitos sobre o I&D, especialmente na margem extensiva, embora o efeito seja concentrado enquanto as empresas recebem os fundos e apresente muito pouco persistência. Tal efeito sobre o I&D traduz-se concretamente em melhor desempenho da empresa, tanto em escala como em produtividade, embora o efeito seja heterogêneo e dependa fortemente do tamanho da empresa: consistente com diferentes padrões de inovação, as pequenas empresas exibiram efeitos de escala muito fortes, enquanto as grandes empresas viram uma produtividade significativa e ganhos de eficiência. De modo geral, as empresas apoiadas pelo programa apresentam mudanças estruturais, tanto em termos de aumento da participação de indivíduos qualificados dentro da empresa como na adesão de novas tecnologia, um facto consistente com a relação entre o I&D, a inovação e os progressos técnicos com requisitos específicos em termos de qualificações.Silva, Joana Cristina Gonçalves daBernard, Anna Juliette ZoéVeritati - Repositório Institucional da Universidade Católica PortuguesaLila, Rahim Richard Jiva2022-12-20T01:30:38Z2022-01-252021-122022-01-25T00:00:00Zinfo:eu-repo/semantics/publishedVersioninfo:eu-repo/semantics/masterThesisapplication/pdfhttp://hdl.handle.net/10400.14/38718TID:202964370enginfo:eu-repo/semantics/openAccessreponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos)instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãoinstacron:RCAAP2023-07-12T17:44:13Zoai:repositorio.ucp.pt:10400.14/38718Portal AgregadorONGhttps://www.rcaap.pt/oai/openaireopendoar:71602024-03-19T18:31:37.437053Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informaçãofalse |
dc.title.none.fl_str_mv |
Better and stronger? : theory and evidence on the effect of R&D tax credits on the trajectory of firms |
title |
Better and stronger? : theory and evidence on the effect of R&D tax credits on the trajectory of firms |
spellingShingle |
Better and stronger? : theory and evidence on the effect of R&D tax credits on the trajectory of firms Lila, Rahim Richard Jiva R&D Innovation Impact evaluation Firm performance Scale Productivity Skill bias Technology I&D Inovação Avaliação de impactos Desempenho Escala Produtividade Qualificações Tecnologia Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
title_short |
Better and stronger? : theory and evidence on the effect of R&D tax credits on the trajectory of firms |
title_full |
Better and stronger? : theory and evidence on the effect of R&D tax credits on the trajectory of firms |
title_fullStr |
Better and stronger? : theory and evidence on the effect of R&D tax credits on the trajectory of firms |
title_full_unstemmed |
Better and stronger? : theory and evidence on the effect of R&D tax credits on the trajectory of firms |
title_sort |
Better and stronger? : theory and evidence on the effect of R&D tax credits on the trajectory of firms |
author |
Lila, Rahim Richard Jiva |
author_facet |
Lila, Rahim Richard Jiva |
author_role |
author |
dc.contributor.none.fl_str_mv |
Silva, Joana Cristina Gonçalves da Bernard, Anna Juliette Zoé Veritati - Repositório Institucional da Universidade Católica Portuguesa |
dc.contributor.author.fl_str_mv |
Lila, Rahim Richard Jiva |
dc.subject.por.fl_str_mv |
R&D Innovation Impact evaluation Firm performance Scale Productivity Skill bias Technology I&D Inovação Avaliação de impactos Desempenho Escala Produtividade Qualificações Tecnologia Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
topic |
R&D Innovation Impact evaluation Firm performance Scale Productivity Skill bias Technology I&D Inovação Avaliação de impactos Desempenho Escala Produtividade Qualificações Tecnologia Domínio/Área Científica::Ciências Sociais::Economia e Gestão |
description |
This thesis examines the effect of R&D tax credits on the trajectory of firms, in terms of R&D, performance, workforce composition and technology adoption. We elaborate a theoretical model that links the effect of R&D tax credits on firms’ decision to innovate and their differentiated effects based on firm size. Leveraging on the theoretical framework, we then estimate the causal effects of an R&D tax credits program in Portugal using rich micro-data on innovation and firms. By combining matching with a staggered adoption differences-indifferences, we show that tax credits have strong effects on the investment in R&D-related activities, especially at the extensive margin, although the effect is concentrated while funds are being received and not thereafter. Overall, such effect on R&D translates into better firm performance on scale and productivity. Yet, its nature depends heavily on firm size: consistent with different patterns of innovation, small firms exhibit very strong scale effects while large firms see significant productivity and efficiency gains. Importantly, firms that received the tax credits exhibit structural changes, both in terms of the increased share of skilled individuals within the firm and enhanced technological adoption, a finding consistent with the relationship between R&D, innovation and skill-biased technological change. |
publishDate |
2021 |
dc.date.none.fl_str_mv |
2021-12 2022-12-20T01:30:38Z 2022-01-25 2022-01-25T00:00:00Z |
dc.type.status.fl_str_mv |
info:eu-repo/semantics/publishedVersion |
dc.type.driver.fl_str_mv |
info:eu-repo/semantics/masterThesis |
format |
masterThesis |
status_str |
publishedVersion |
dc.identifier.uri.fl_str_mv |
http://hdl.handle.net/10400.14/38718 TID:202964370 |
url |
http://hdl.handle.net/10400.14/38718 |
identifier_str_mv |
TID:202964370 |
dc.language.iso.fl_str_mv |
eng |
language |
eng |
dc.rights.driver.fl_str_mv |
info:eu-repo/semantics/openAccess |
eu_rights_str_mv |
openAccess |
dc.format.none.fl_str_mv |
application/pdf |
dc.source.none.fl_str_mv |
reponame:Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) instname:Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação instacron:RCAAP |
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Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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RCAAP |
institution |
RCAAP |
reponame_str |
Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) |
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Repositório Científico de Acesso Aberto de Portugal (Repositórios Cientìficos) - Agência para a Sociedade do Conhecimento (UMIC) - FCT - Sociedade da Informação |
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