Title

State Incentives for R&D Activity: Evidence from Biotech

Award Year

2011

Grant Type

Policy research grant

Description

Over the past two decades, R&D tax credits offered by U.S. states have become widespread and increasingly generous. The proliferation of state tax credits designed to attract biotech companies raises three important questions: 1) First, are the tax incentives effective in achieving their stated objective?; 2) Second, to the extent the incentives do increase R&D within the state, how much of this increase is due to drawing R&D away from other states?; 3) Third, are these subsidies an efficient use of taxpayer money? The issue of the role of state tax incentives to foster local economic development has received much attention in the literature. While much is known about traditional industries, much less is known about high tech industries like biotech. This project will collect and use data on R&D tax credits, and will link the data on tax credits to data on R&D investment and R&D jobs both in and outside the biotech sector, by state and year for the period 1990-2008.

Grant Product

State Incentives for Innovation, Star Scientists, and Jobs: Evidence from Biotech
Upjohn Institute working paper 14-203, 2014

State incentives for innovation, star scientists and jobs: Evidence from biotech
Journal of Urban Economics 79, January 2014: 20-38

State Incentives for Innovation, Star Scientists and Jobs: Evidence from Biotech
NBER working paper no. 19294, 2013

State Incentives for Innovation, Star Scientists and Jobs: Evidence form Biotech
Federal Reserve Bank of San Francisco Working Paper Series 2013-17, July 2013

State Incentives for Innovation, Star Scientists and Jobs: Evidence from Biotech
CEPR Discussion Paper No. DP9594, August 2013

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