Benefit-Cost Analysis of Federal and Provincial SR&ED Investment Tax Credits
There is a sound public policy case for subsidizing R&D. When firms perform R&D, they create knowledge that allows them to introduce new products, improve existing goods and services or reduce production costs. However, some of the knowledge created inevitably leaks out or spills over to oth...
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| Format: | Article |
| Language: | English |
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University of Calgary
2021-01-01
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| Series: | The School of Public Policy Publications |
| Online Access: | http://dx.doi.org/10.11575/sppp.v14i.70039 |
| _version_ | 1819053071003549696 |
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| author | John Lester |
| author_facet | John Lester |
| author_sort | John Lester |
| collection | DOAJ |
| description | There is a sound public policy case for subsidizing R&D. When firms perform R&D, they create knowledge that allows them to introduce new products, improve existing goods and services or reduce production costs. However, some of the knowledge created inevitably leaks out or spills over to other firms, allowing them to reap benefits from R&D without performing it themselves. These spillover benefits improve Canada’s overall economic performance, but firms do not consider them when deciding how much to invest in R&D, so a subsidy to encourage more R&D is the right policy response. |
| first_indexed | 2024-12-21T12:29:53Z |
| format | Article |
| id | doaj.art-f5c565e575a7444c862468b37e8f42f2 |
| institution | Directory Open Access Journal |
| issn | 2560-8312 2560-8320 |
| language | English |
| last_indexed | 2024-12-21T12:29:53Z |
| publishDate | 2021-01-01 |
| publisher | University of Calgary |
| record_format | Article |
| series | The School of Public Policy Publications |
| spelling | doaj.art-f5c565e575a7444c862468b37e8f42f22022-12-21T19:04:05ZengUniversity of CalgaryThe School of Public Policy Publications2560-83122560-83202021-01-01141149Benefit-Cost Analysis of Federal and Provincial SR&ED Investment Tax CreditsJohn Lester0The School of Public PolicyThere is a sound public policy case for subsidizing R&D. When firms perform R&D, they create knowledge that allows them to introduce new products, improve existing goods and services or reduce production costs. However, some of the knowledge created inevitably leaks out or spills over to other firms, allowing them to reap benefits from R&D without performing it themselves. These spillover benefits improve Canada’s overall economic performance, but firms do not consider them when deciding how much to invest in R&D, so a subsidy to encourage more R&D is the right policy response.http://dx.doi.org/10.11575/sppp.v14i.70039 |
| spellingShingle | John Lester Benefit-Cost Analysis of Federal and Provincial SR&ED Investment Tax Credits The School of Public Policy Publications |
| title | Benefit-Cost Analysis of Federal and Provincial SR&ED Investment Tax Credits |
| title_full | Benefit-Cost Analysis of Federal and Provincial SR&ED Investment Tax Credits |
| title_fullStr | Benefit-Cost Analysis of Federal and Provincial SR&ED Investment Tax Credits |
| title_full_unstemmed | Benefit-Cost Analysis of Federal and Provincial SR&ED Investment Tax Credits |
| title_short | Benefit-Cost Analysis of Federal and Provincial SR&ED Investment Tax Credits |
| title_sort | benefit cost analysis of federal and provincial sr ed investment tax credits |
| url | http://dx.doi.org/10.11575/sppp.v14i.70039 |
| work_keys_str_mv | AT johnlester benefitcostanalysisoffederalandprovincialsredinvestmenttaxcredits |