Abstract
In the past years, the awareness of the importance of business research and development for the economy has grown significantly. In order to encourage businesses to conduct R&D, governments are increasingly providing tax incentives or grants. To date, most literature has focused on proving the efficiency of these incentives, while their impact on international trade in R&D services has been largely ignored so far. Conducting an empirical analysis, this paper finds that R&D incentives have opposing, time variant effects on international R&D trade. The results indicate that government decisions on R&D incentives should also take the scale of R&D incentives of its major trade partners into consideration.
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The OECD provides aggregated data on BERD funded by governments, foreign sources or other national sources.
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The OECD publishes annual data on international trade in services. In some cases this data can be disaggregated to imports and exports of R&D.
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Adding more information of price and GDP weakens the significance of government support. Still, the dynamic impact of government support on R&D trade remains the same.
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Bachmann, C., Baumann, M. (2016). The Effect of Government R&D Incentives on International R&D Trade. In: Audretsch, D., Lehmann, E., Meoli, M., Vismara, S. (eds) University Evolution, Entrepreneurial Activity and Regional Competitiveness. International Studies in Entrepreneurship, vol 32. Springer, Cham. https://doi.org/10.1007/978-3-319-17713-7_19
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