<abstract xmlns="http://www.w3.org/1999/xhtml"><p> In many countries, tax incentives are a popular means to achieve political, economic and social objectives.  Their aim is to reach and accelerate certain activities of public interest. Furthermore, one of the objectives is to  accelerate the development of a certain industry and influence the growth of research and investment in foreign  capital. Innovation is the key element that helps a company achieve competitive advantage. Global competition  is forced to offer unique products with added values on the market. Tax incentives for research and development  are an important factor of innovation. This paper aims to present the importance of research and development,  as well as the role of tax incentives. States should use their fiscal policy to stimulate investment in research and  development through various forms of tax relief. The Republic of Croatia applies tax incentives for research and  development, but to a significantly less extent than other European Union countries. </p></abstract>

In many countries, tax incentives are a popular means to achieve political, economic and social objectives.  Their aim is to reach and accelerate certain activities of public interest. Furthermore, one of the objectives is to  accelerate the development of a certain industry and influence the growth of research and investment in foreign  capital. Innovation is the key element that helps a company achieve competitive advantage. Global competition  is forced to offer unique products with added values on the market. Tax incentives for research and development  are an important factor of innovation. This paper aims to present the importance of research and development,  as well as the role of tax incentives. States should use their fiscal policy to stimulate investment in research and  development through various forms of tax relief. The Republic of Croatia applies tax incentives for research and  development, but to a significantly less extent than other European Union countries.

Research and Development and Tax Incentives

Faculty of Tourism and Hospitality Management, Opatija, Croatia

South East European Journal of Economics and Business

{"article-title":"Research and Development and Tax Incentives"}

In many countries, tax incentives are a popular means to achieve political, economic and social objectives.  Their aim is to reach and accelerate certain...

Research and Development and Tax Incentives

Pubblicato online: 09 mar 2013

Pagine: 51 - 62

DOI: https://doi.org/10.2478/v10033-012-0014-6

This content is open access.