Research Paper

Estimating policy mix effects: Grants and tax credit complementarities for R&D and innovation outcomes

ERC Research paper No 110

Associated Themes
  • Innovation

Governments provide support to private sector R&D and innovation through a range of policy schemes including direct R&D grants and indirect R&D tax incentives. As a result, firms receiving support often benefit from a ‘policy mix’ of interacting policy instruments. These interactions could be either synergistic, neutral, or even lead to a reduction in the potential effect of the individual policies. Here, using data from the UK innovation survey we explore the input and output additionality of policy-mix allowing for potentially different effects for different group of firms.