Economie et Statistique / Economics and Statistics n° 526-527 - 2021Varia

Economie et Statistique / Economics and Statistics
Paru le : Paru le 07/10/2021
Simon Bunel and Benjamin Hadjibeyli
Economie et Statistique / Economics and Statistics - October 2021
Consulter

An Evaluation of the Innovation Tax Credit

Simon Bunel and Benjamin Hadjibeyli

Economie et Statistique / Economics and Statistics

No 526-527

Paru le : 07/10/2021

Abstract

The Innovation tax credit (crédit d’impôt innovation, CII) is an extension of the Research tax credit (crédit d’impôt recherche, CIR) intended to boost the incentive effect of the latter on SMEs to encourage them to engage in the creation of new products via the development of prototypes or pilot installations. Introduced in 2013, it represented €120 million of tax credit in 2014 for some 5,300 recipients. This article seeks to measure the impact of the introduction of this scheme on its beneficiaries over the period from 2013 to 2016. Using a difference-in-differences method following propensity score matching, we find a greater increase in employment in the short term for companies benefiting from the scheme, along with a more marked increase in their turnover in the medium term. A greater increase in the number of new products produced by the beneficiaries is also observed. Finally, the introduction of the CII was accompanied by a reduction in the research expenditure reported under the CIR.

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Citation: Bunel, S. & Hadjibeyli, B. (2021). An Evaluation of the Innovation Tax Credit. Economie et Statistique / Economics and Statistics, 526-527, 113–135. doi:10.24187/ecostat.2021.526d.2055