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The impact of research and development promotion schemes in the Taiwanese electronic component industry
Author(s) -
Wang JiannChyuan,
Tsai KuenHung
Publication year - 1998
Publication title -
randd management
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.253
H-Index - 102
eISSN - 1467-9310
pISSN - 0033-6807
DOI - 10.1111/1467-9310.00088
Subject(s) - depreciation (economics) , promotion (chess) , business , tax exemption , government (linguistics) , economics , public economics , microeconomics , profit (economics) , linguistics , philosophy , financial capital , politics , political science , law , capital formation
This paper explores the effect of government research and development (R&D) promotion schemes on R&D expenditures in the electronic component industry. We investigated the impact of three promotion tools: R&D tax credits, exemption from tariffs, and accelerated depreciation. A total of 124 firms was interviewed. A two‐limit model was used in the data analysis. Our empirical analysis indicates the scheme generated a rate of increase in industrial R&D investments of about 16%. Furthermore, on average, the impacts of R&D tax credits, exemption from tariffs, and accelerated depreciation, were about 10%, 4%, and 2%, respectively. In addition, we found that the larger the firm, the weaker the influence of the promotion scheme on R&D expenditures in the industry.