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A new evaluation of public support to R&D in Belgium shows that regional subsidies and the federal partial exemption from payment of the withholding tax for researchers may have helped to increase R&D expenditure in Belgium. The results are less positive for some benefits granted by the federal government through corporate income taxation. As these tax benefits account for the lion's share of the rapidly increasing budgetary costs of public support for R&D, the efficiency of public support could be increased.
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Themes
Structural studies > Productivity and long-term growth
JEL
Public Economics > Fiscal Policies and Behavior of Economic Agents > Firm [H32]
Industrial Organization > Market Structure, Firm Strategy, and Market Performance > General [L10]
Industrial Organization > Firm Objectives, Organization, and Behavior > Entrepreneurship [L26]
Economic Development, Technological Change, and Growth > Technological Change > Management of Technological Innovation and R&D [O32]
Economic Development, Technological Change, and Growth > Technological Change > Government Policy [O38]
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