Description
Research and Development (R&D) tax credits are one of the most widely adopted policies state governments use to incentivize R&D spending by firms operating in a state. R&D spending is associated with increases in firm productivity, innovation, and higher wages. However, most studies into these tax credits examine only the effect the credit has on firm-based R&D spending and assume the increases in R&D spending mean states are receiving the social and economic benefits endogenous growth theory predicts. This dissertation connects R&D tax credits with the expected outcomes of R&D spending increases to evaluate the efficacy of the tax credits. Specifically, the dissertation connects R&D tax credits to the movement of researchers between states, innovative activity, and state fiscal health. The study uses a panel of U.S. PhD graduates and a fixed-effects linear probability model to show R&D tax credits have a small but statistically significant impact on PhDs moving to states that have the tax credit. Using a structural equation model and a latent innovation variable, the dissertation shows R&D tax credits have a small but significant impact on innovative activity mediated by R&D spending. Finally, the dissertation examines the effect of R&D tax credits on a state’s short- and long-run fiscal health by using a distributed lag model to illustrate R&D tax credits are associated with decreases with fiscal health.
Details
Title
- State R&D Tax Credits: Social and Economic Outcomes
Contributors
- Selby, John David (Author)
- Bretschneider, Stuart (Thesis advisor)
- Bozeman, Barry (Committee member)
- Siegel, Don (Committee member)
- Swindell, David (Committee member)
- Arizona State University (Publisher)
Date Created
The date the item was original created (prior to any relationship with the ASU Digital Repositories.)
2020
Subjects
Resource Type
Collections this item is in
Note
- Doctoral Dissertation Public Administration and Policy 2020