Should Finland Introduce an R&D Tax Credit? Reflections Based on Norwegian R&D Tax Policy

Møen Jarle

Subsidies to commercial R&D can be given as R&D tax credits or through direct grants. Tax incentives have become an increasingly popular policy tool over the last decades. In this note I discuss the pros and cons of the two forms of subsidies in light of Norway’s experience with R&D policy. I review an ongoing evaluation of the Norwegian R&D tax credit introduced in 2002 and reflect on whether it is desirable for Finland to introduce a similar scheme. I suggest that this is not desirable. If Finland introduces an R&D tax credit, I argue that it should be limited to small and medium sized companies.

Publication info

Series
Discussion Papers no. 1097
Date
2007
Avainsanat
teknologiapolitiikka, t&k-tuet, verokannustin, Suomi, Norja
Keywords
R&D policy, R&D subsidy, R&D tax credit, Finland, Norway
JEL
H25,O38
Pages
14
Price
10 €
Availability of print version
Language
English