Research Articles

R&D Tax Incentives: How Do They Impact Portuguese Start-ups?

Authors

  • Luis Pedro Ferreira Student at Master in Innovation and Technological Entrepreneurship of Engineering Faculty of Porto University.
  • Alexandra Lobo Xavier Engineering Faculty of Porto University ORCID 0000-0002-2458-4915
  • Daniel F. Polonia Economics, Management, Industrial Engineering and Tourism Department Governance, Competitiveness and Public Policies (GovCoPP) Research Group Aveiro University ORCID 0000-0001-8194-4713

DOI:

https://doi.org/10.4067/S0718-27242019000100034

Abstract

In this work, a comparison between start-up companies’ performance is made based on the way they use the Portuguese R&D tax credit program. From the analysis of the results, it is possible to verify that companies that benefit from this program have a distinct behavior from those that do not, either in what regards financial performance, the weight of the intangible assets in the company or in what regards the quality and value added of the jobs created. It is also possible to find that beneficiary companies mix the tax credits with the use of European, national and regional grants, thus mixing the funding available to support their Research, Development and Innovation activities.

Keywords:

  • SIFIDE
  • grants
  • start-ups
  • Portugal
  • performance

Downloads

Download data is not yet available.

Author Biographies

Alexandra Lobo Xavier, Engineering Faculty of Porto University

Degree in Chemical Engineering from the Faculty of Sciences and Technology of the University of Coimbra. MBA from University of Porto.

Responsible for the launch of a new Research Unit at INESC Porto - Innovation and Technology Transfer Unit, of which it is currently its Coordinator.

Invited lecturer of the Master in Innovation and Technological Entrepreneurship of Engineering Faculty of Porto University.

Daniel F. Polonia, Economics, Management, Industrial Engineering and Tourism Department Governance, Competitiveness and Public Policies (GovCoPP) Research Group Aveiro University

Daniel Ferreira Polónia is an Invited Assistant Professor at the Department of Economy, Management, Industrial Engineering and Tourism of the Universidade de Aveiro in Portugal. He is also a researcher with the Governance, Competitiveness and Public Policies (GovCoPP) Research Unit of the same University. He holds a PhD in Electrical Engineering and a bachelor’s degree in Electronic Engineering. His research interests are in the area of healthcare management and innovation.

References

Baliamoune-Lutz, M. (2015). TAXES AND ENTREPRENEURSHIP IN OECD COUNTRIES. Contemporary Economic Policy, 33(2), 369–380. http://doi.org/10.1111/coep.12079

Botti, S. (2013). Expert evaluation network Job creation as an indicator of outcomes in ERDF programmes Expert evaluation network delivering policy analysis on the performance of Cohesion policy 2007-2013 2013 Job creation as an indicator of outcomes in ERDF programmes Synthesis report.

Bureau Van Dijk. (n.d.). Sabi - Spain and Portugal financial company information and business intelligence - BvD. Retrieved March 4, 2018, from https://www.bvdinfo.com/en-us/our-products/company-information/national-products/sabi

Busom, I., Corchuelo, B., & Martínez-Ros, E. (2014). Tax incentives... or subsidies for business R&D? Small Business Economics. http://doi.org/10.1007/s11187-014-9569-1

Carvalho, A. (2013). Financiamento público à I&D empresarial em Portugal. Notas Económicas, (37).

Castellacci, F., & Lie, C. M. (2015). Do the effects of R&D tax credits vary across industries? A meta-regression analysis. Research Policy, 44(4), 819–832.

Corchuelo, M. B., & Martínez-Ros, E. (2010). Who benefits from R&D tax policy? Cuadernos de Economía y Dirección de La Empresa, 13(45), 145–170.

Educação, D. G. da E. da C. e da. (2016). Direção-Geral de Estatísticas da Educação e Ciência. Retrieved June 19, 2018, from http://www.dgeec.mec.pt/np4/206/

Eurostat. (n.d.). Eurostat indicators on High-tech i ndustry and Knowledge – intensive services. Retrieved June 19, 2018, from http://ec.europa.eu/eurostat/cache/metadata/Annexes/htec_esms_an3.pdf

Guo, S., Hotchkiss, E. S., & Song, W. (2011). Do Buyouts (Still) Create Value? Journal of Finance, 66(2), 479–517. http://doi.org/10.1111/j.1540-6261.2010.01640.x

Howell, S. T. (2017). Financing Innovation: Evidence from R&D Grants. American Economic Review, 107(4), 1136–1164. http://doi.org/10.1257/aer.20150808

Jain, B. A., & Kini, O. (1994). The Post‐Issue Operating Performance of IPO Firms. The Journal of Finance, 49(5), 1699–1726. http://doi.org/10.1111/j.1540-6261.1994.tb04778.x

Kaplan, S. (1989). The effects of management buyouts on operating performance and value. Journal of Financial Economics, 24(2), 217–254. http://doi.org/10.1016/0304-405X(89)90047-0

Lumpkin, J. R., & Ireland, R. D. (1988). Screening Practices of New Business Incubators: The Evaluation of Critical Success Factors. American Journal of Small Business, 12(4), 59–81. http://doi.org/10.1177/104225878801200404

Margarida, A., Moreira, N., Silva, D., Tavares, S. M., De, A., & Moreira Carneiro, J. (2014). The Determinants of Participation in R&D Subsidy Programmes: Evidence from Firms and S&T Organisations in Portugal.

Noked, N. (2014). INTEGRATED TAX POLICY APPROACH TO DESIGNING RESEARCH & DEVELOPMENT TAX BENEFITS (Vol. 5349).

OECD. (2018). OECD REVIEW OF NATIONAL R&D TAX INCENTIVES AND ESTIMATES OF R&D TAX SUBSIDY RATES, 2017 Deliverable 3.3: Summary report on tax subsidy rates – core countries (Year 2) Work package 3. Estimation of implied R&D tax subsidies.

Radas, S., Anić, I.-D., Tafro, A., & Wagner, V. (2015). The effects of public support schemes on small and medium enterprises. Technovation, 38, 15–30. http://doi.org/10.1016/J.TECHNOVATION.2014.08.002

Rose, G. M., & Shoham, A. (2002). Export performance and market orientation: establishing an empirical link. Journal of Business Research, 55(3), 217–225.

Sauermann, J. (2016). Performance measures and worker productivity. IZA World of Labor. http://doi.org/10.15185/izawol.260

Thomson, R. (2012). Measures of R&D Tax Incentives for OECD Countries Measures of R&D Tax Incentives for OECD Countries*.

Wiggins, J., & Gibson, D. V. (2003). Overview of US incubators and the case of the Austin Technology Incubator. International Journal of Entrepreneurship and Innovation Management, 3(1/2), 56. http://doi.org/10.1504/IJEIM.2003.002218

Downloads

Received

2018-06-29

Accepted

2019-04-16

Published

2019-04-25

How to Cite

Ferreira, L. P., Xavier, A. L., & Polonia, D. F. (2019). R&D Tax Incentives: How Do They Impact Portuguese Start-ups?. Journal of Technology Management and Innovation, 14(1), 34–39. https://doi.org/10.4067/S0718-27242019000100034

Issue

Vol. 14 No. 1 (2019)

Section

Research Articles

License

 

Crossref
Scopus
Google Scholar
Europe PMC