Tax incentives and R&D: an evaluation of the 2002 UK reform using micro data

The United Kingdom introduced an R&D tax incentive scheme first for SMEs in 2000 and then for large firms in 2002, gradually increasing the generosity of both schemes after 2008. This study exploits the differences between companies with similar characteristics that were just above the size threshold for eligibility to the SME scheme and those that were just below, before and after the 2002 reform. This allows for a difference-in-differences approach to measure the (additional) impact of the tax incentives on firms around this size threshold. Treatment group firms are found to have increased their R&D spending by around 18 percent on average in response to the large company tax incentive, implying a user cost elasticity of -1.35. We do not find significant differences in this effect between sectors

Will the real R&D employees please stand up? Effects of tax breaks in firm level outcomes

This paper evaluates the effect of R&D tax incentives in a quasi-experimental setting. I identify the impact by exploiting a reform in UK policy which increased the SME threshold from 250 to 500 employees. First, I provide evidence that tax incentives help to increase R&D spending at the company level, and the effect translates to a user cost elasticity of -1.18. Second, R&D generated through the reform may be attributable to an increase in the number of R&D employees. I use R&D survey data for which the companies do not have an incentive to re-label their ordinary spending as R&

A Preliminary Study on Using Multi-Nozzle Polymer Deposition System to Fabricate Composite Alginate/Carbon Nanotube Tissue Scaffolds

Three-dimensional composite alginate/single wall carbon nanotube (SWCNT) scaffolds encapsulated with endothelial cells were fabricated by a multi-nozzle biopolymer freeform deposition system. This system enables the converting of CAD designed scaffold pattern into process toolpaths and the use of computer control program to guide the nozzle deposition at spatial position for layered fabrication of 3D tissue scaffolds. The morphological, mechanical, structural and biological properties of as-fabricated scaffolds were characterized by optical microscope, SEM, Microtensile testing machine, Alamar Blue Assay, and Live-Dead Assay, respectively. The multi-nozzle deposition system demonstrated a highly efficient and effective process to build tissue scaffold or cell embedded constructs. Characterization results showed that the incorporation of SWCNT into alginate not only enhanced the mechanical strength of the scaffolds but also improved the cell affinity and the interaction with substrate. Further cell culture experimental results also showed that the incorporation of SWCNT in alginate enhanced endothelial cell proliferation compared with pure alginate scaffold.Mechanical Engineerin

Effectiveness of fiscal incentives for R&D: quasi-experimental evidence

With growing academic and policy interest in R&D tax incentives, the question about their effectiveness has become ever more relevant. In the absence of an exogenous policy reform, the simultaneous determination of companies' tax positions and their R&D spending causes an identification problem in evaluating tax incentives. To overcome this problem, we exploit a UK policy reform and use the population of corporation tax records that provide precise information on the amount of firm-level R&D expenditure. Using difference-in-differences and other panel regression approaches, we find a positive and significant impact of tax incentives on R&D spending, and an implied user cost elasticity estimate of around -2.3. This translates to more than a pound in additional private R&D for each pound foregone in corporation tax revenu

Trends in UK BERD after the Introduction of R&D Tax Credits

This paper documents the increase in R&D intensity in the UK manufacturing sector in the period following the introduction of R&D tax credits in 2000-02. This increase is broadly in line with that predicted by econometric studies of the impact of R&D tax credits, notably Bloom, Griffith and Van Reenen (2002). If anything, UK manufacturing R&D intensity has risen faster than their model predicts. The timing of this increase is not simply explained by trends in neighbouring economies, although one puzzle is that the increase is largely con.ned to high tech sub-sectors of manufacturing

Generation of Porous Structures Using Fused Deposition

The Fused Deposition Modeling process uses hardware and software machine-level language that are very similar to that of a pen-plotter. Consequently, the·use of patterns with poly-lines as basic geometric features, instead of the current method based on filled polygons (monolithic models), can increase its efficiency. In the current study, various toolpath planning methods have been developed to fabricate porous structures. Computational domain decomposition methods can be applied to the physical or to slice-level domains to generate structured and unstructured grids. Also, textures can be created using periodic tiling of the layer with unit cells (squares, honeycombs, etc). Methods 'based on curves include fractal space filling curves and.change of effective road width Within a layer or within a continuous curve. Individual phases can also be placed in binary compositions. In present investigation, a custom software has been developed and implemented to generate build files (SML) and slice files (SSL) for the above-mentioned structures, demonstrating the efficient control ofthe size, shape, and distribution ofporosity.Mechanical Engineerin

Thermal Analysis Of Fused Deposition

Fused Deposition processes involve successive melting, extrusion and solidification of thermoplastic polymer melts. Fluid mechanics and heat transfer of neat or particle-filled polymeric melts, viscoelastic deformation and solidification ofthe roads that are being produced, and repetitive thermal loading of the growing part are important physical processes that control the final quality of the part. Previous computational process models investigated deposition and cooling processes for single and multiple filaments. In the current study, complimentary computational models are presented for the extrusion phase of the process. Impact of liquefier and nozzle design on thermal hardware behavior and operational stability has been quantified. Also a detailed study of temperature field near the vicinity of deposition point is presented with particular emphasis on dimensional analysis and deposition ofmultiple material systems.Mechanical Engineerin

More giving or more givers? The effects of tax incentives on charitable donations in the UK

This paper estimates the effects of tax incentives on charitable contributions in the UK, using the universe of self-assessment income tax returns between 2005 and 2013. We exploit variation from a large reform in 2010 to estimate intensive- and extensive-margin tax-price elasticities of giving. Using a predicted-tax-rate instrument for the price of giving relative to consumption, we find an intensive-margin elasticity of about − 0.2 and an extensive-margin elasticity of − 0.1, yielding a total elasticity of about − 0.3. To further explore the extensive-margin response, we propose a model with a fixed cost of declaring donations and obtain a structural estimate of that cost of around £47. We also study the welfare effects of tax incentives, extending the theoretical literature to allow for extensive-margin giving and for a fixed cost of declaring donations. Taking into account these factors, there is a case for increasing the subsidy on charitable giving in the UK

Precision extruding deposition of polycaprolactone and composite polycaprolactone/hydroxyapatite scaffolds for tissue engineering

Paper presented at the 2005 IEEE 31st Annual Northeast Bioengineering Conference, Hoboken, NJ.Precision Extruding Deposition (PED) process was used to directly fabricate Polycaprolactone (PCL) and PCL/ Hydroxyapatite (HA) composite tissue scaffolds. HA powder was melt blended with PCL, a biodegradable polymer. Scaffolds with controlled pore size porosity were fabricated. The scaffold morphology and the mechanical properties were evaluated using SEM and mechanical testing. In vivo biological studies were conducted to investigate the cellular responses of the PCL scaffolds. Results and characterizations demonstrate the viability of the PED process as well as the good mechanical property, structural integrity, controlled pore size, pore interconnectivity, and the biological compatibility of the fabricated scaffolds

Tax incentives, R&D; and productivity

This thesis explores the causal relationships between tax incentives, research and development (R&amp;D;) and productivity. Using R&amp;D; survey data from the United Kingdom (UK) Office for National Statistics and administrative data on corporation tax returns from HM Revenue and Customs, I first conduct empirical analyses of tax incentive policies for R&amp;D;, and then estimate the elasticity of output with respect to firms' own R&amp;D; efforts as well as external R&amp;D; performed by neighboring firms in technology and product space. In the first two chapters which focus on tax incentive policies and their evaluation, I am able to identify the policy effect of interest by exploiting two significant reforms in the UK in 2002 and 2008. I find that tax incentives had a positive and significant stimulating effect on businesses' R&amp;D; spending. I argue that the availability of a quasi-experimental set up helps in better identifying the policy impact. The production function estimation exercise in the third chapter shows that double counting of R&amp;D; human resources and materials in the production function causes the elasticity of output with respect to the firms' own R&amp;D; to be substantially underestimated. I also find that the R&amp;D; done in multi-unit enterprise groups is productive for the production facilities which themselves do not perform R&amp;D.; The Jaffe (1986) and Bloom et al. (2013) measures of external R&amp;D;, which account for closeness of firms in technology and product space can be constructed and included in the production function in the spirit of Griliches (1979). I find that the point estimate for the elasticity of output with respect to firms' own R&amp;D; is around 3 percent and statistically significant. Evidence is mixed regarding the productivity effects of R&amp;D; carried out by competitors in the product market or neighboring firms in technology space. The detailed data sets used in this study offer valuable resources for empirical work on R&amp;D; and productivity.</p