Policy mix to foster innovation in the Dominican Republic: attempts from an empirical perspective

Gómez-Valenzuela, Víctor; Rosa, Henry; Tejeda, Anne Sophie

doi:10.1080/09537325.2020.1739640

Cited by 10 publications

(9 citation statements)

References 39 publications

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“…Nevertheless, we hope that this framework at least prompts additional debate over what needs to be done to restore equitable growth in the modern economy. (1) Conclusiveness of evidence (2) Net benefit (3) Time frame (4) Effect on inequality (5) ■ For helpful comments on earlier drafts, we thank the editors (Timothy Taylor, Enrico Moretti, and Gordon Hanson) as well as Bronwyn Hall, Ben Jones, Josh Lerner, Petra Moser, and Jim Poterba. Research…”

Section: Discussionmentioning

confidence: 99%

“…Jaffe (1989) pioneered research in this area by documenting important effects of academic R&D on corporate patenting, a finding corroborated by Belenzon and Schankerman (2013) and Hausman (2018). 2 Governments can also fund their own research and development labs-for example, SLAC National Accelerator Laboratory at Stanford University. These labs can generate more research activity and employment in the technological and geographical area in which the lab specializes.…”

Section: Government Research Grantsmentioning

confidence: 99%

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A Toolkit of Policies to Promote Innovation

Bloom

Reenen

Williams

2019

Journal of Economic Perspectives

270

150

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Economic theory suggests that market economies are likely to underprovide innovation because of the public good nature of knowledge. Empirical evidence from the United States and other advanced economies supports this idea. We summarize the pros and cons of different policy instruments for promoting innovation and provide a basic “toolkit” describing which policies are most effective according to our reading of the evidence. In the short run, R&D tax credits and direct public funding seem the most productive, but in the longer run, increasing the supply of human capital (for example, relaxing immigration rules or expanding university STEM admissions) is likely more effective.

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Section: Discussionmentioning

confidence: 99%

Section: Government Research Grantsmentioning

confidence: 99%

A Toolkit of Policies to Promote Innovation

Bloom

Reenen

Williams

2019

Journal of Economic Perspectives

270

150

View full text Add to dashboard Cite

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“…, 2016). Another possible explanation can be drawn from the crowding-out effects (Gómez-Valenzuela et al. , 2020), which is difficult to prove in practice.…”

Section: Discussionmentioning

confidence: 99%

“…, 2019), opportunistic behavior to obtain undue tax advantages (Crespi et al. , 2016) and, also, crowding out effects (Gómez-Valenzuela et al. , 2020).…”

Section: Discussionmentioning

confidence: 99%

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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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