<abstract xmlns="http://www.w3.org/1999/xhtml"><p> In many countries tax incentives are a popular means of realizing political, economic and social objectives. The main motive of their application is oft en to achieve and accelerate the selected activities in the public interest and also stimulate development of industry, and induce growth in research and investment. The key element that helps a company achieve a competitive advantage is innovation. Global competition forces the production of unique products and services. Tax incentives in science, research and development are important in stimulating innovation. The purpose of this article is to show the level of managerial awareness about R&amp;D tax incentives, the level of R&amp;D tax incentive usage by companies in Poland, and main obstacles that managers meet with R&amp;D tax incentives in practice. We explore R&amp;D tax incentives as a government instrument on R&amp;D management and aim to find the reasons why Polish companies do not take advantage of them. We examine 275 companies using a semi-structured questionnaire. Our findings suggest that many firms report lack of knowledge about such incentives, and firms find many obstacles to reach all of the requirements which are necessary to use the incentives. Due to our analysis we find that large firms, especially those that implement innovation, are more likely to use the tax incentives, but small and medium sized companies find more obstacle. The effect of this tax policy is significant mainly in large, high-tech sector firms.</p></abstract>

In many countries tax incentives are a popular means of realizing political, economic and social objectives. The main motive of their application is oft en to achieve and accelerate the selected activities in the public interest and also stimulate development of industry, and induce growth in research and investment. The key element that helps a company achieve a competitive advantage is innovation. Global competition forces the production of unique products and services. Tax incentives in science, research and development are important in stimulating innovation. The purpose of this article is to show the level of managerial awareness about R&D tax incentives, the level of R&D tax incentive usage by companies in Poland, and main obstacles that managers meet with R&D tax incentives in practice. We explore R&D tax incentives as a government instrument on R&D management and aim to find the reasons why Polish companies do not take advantage of them. We examine 275 companies using a semi-structured questionnaire. Our findings suggest that many firms report lack of knowledge about such incentives, and firms find many obstacles to reach all of the requirements which are necessary to use the incentives. Due to our analysis we find that large firms, especially those that implement innovation, are more likely to use the tax incentives, but small and medium sized companies find more obstacle. The effect of this tax policy is significant mainly in large, high-tech sector firms.

R&amp;D Tax Incentives for Innovation and Managerial Decisions

Bialystok University of Technology, Department of Finance and Accounting,

Bialystok University of Technology, Department of Economics And Social Sciences,

Financial Internet Quarterly

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

R&D Tax Incentives for Innovation and Managerial Decisions

{"article-title":"R&D Tax Incentives for Innovation and Managerial Decisions"}

In many countries tax incentives are a popular means of realizing political, economic and social objectives. The main motive of their application is oft en to...

R&D Tax Incentives for Innovation and Managerial Decisions

Published Online: Feb 08, 2017

Page range: 46 - 56

Received: May 31, 2015

Accepted: Feb 23, 2016

DOI: https://doi.org/10.1515/fiqf-2016-0128

Keywords
tax incentives, research and development, innovations

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

R&D Tax Incentives for Innovation and Managerial Decisions

Published Online: Feb 08, 2017

Page range: 46 - 56

Received: May 31, 2015

Accepted: Feb 23, 2016

DOI: https://doi.org/10.1515/fiqf-2016-0128

Keywordstax incentives, research and development, innovations

© 2017

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
tax incentives, research and development, innovations