Discussion Papers no. 640

Evaluation of the Norwegian R&D tax credit scheme

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.

Om publikasjonen

Tittel

Evaluation of the Norwegian R&D tax credit scheme

Ansvarlige

Ådne Cappelen, Erik Fjærli, Frank Foyn, Torbjørn Hægeland, Jarle Møen, Arvid Raknerud, Marina Rybalka

Serie og -nummer

Discussion Papers no. 640

Utgiver

Statistics Norway

Emne

Discussion Papers

ISSN

1892-753X

Antall sider

23

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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