Trends in UK BERD after the introduction of r&d tax credits

Trends in UK BERD after the introduction of r&d tax credits
Document type
Paper
Author(s)
Bond, Stephen R; Guceri, Irem
Publisher
Said Business School, Oxford University
Date of publication
1 January 2012
Series
Saïd Business School Working Paper Series 2012-1
Subject(s)
Trends: economic, social and technology trends affecting business
Collection
Business and management
Material type
Reports

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This paper documents the increase in R&D intensity in the UK manufacturing sector in the period following the introduction of R&D tax credits in 2000-02. This increase is broadly in line with that predicted by econometric studies of the impact of R&D tax credits. If anything, UK manufacturing R&D intensity has risen faster than their model predicts. The timing of this increase is not simply explained by trends in neighbouring economies, although one puzzle is that the increase is largely confined to high tech sub-sectors of manufacturing.

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