TAX IMPACT ON INVESTMENTS IN RESEARCH AND DEVELOPMENT OF INDUSTRIAL ENTERPRISES

Authors

DOI:

https://doi.org/10.35774/jee2025.02.267

Keywords:

effective tax rate, investments in production innovations, knowledge intensity of industries, research and development expenditures, tax burden, tax incentives for business innovation.

Abstract

The article substantiates the feasibility of using fiscal incentives to stimulate business investment in research and development (R&D) to intensify production innovations and ensure high-quality economic growth. In order to determine the potential impact of tax instruments, the author assesses the dependence of R&D expenditures on changes in the tax burden using econometric modeling methods. This approach has not yet been adopted by Ukrainian researchers. The present study sought to investigate the non-linear negative effects on R&D investment by enterprises from an increase in the tax burden. The statistical estimates obtained confirmed the significance of tax instruments in stimulating industrial business investment in R&D. This finding provides a rationale for recommending the introduction of appropriate incentives, which are currently absent within the Ukrainian legislation.

JEL: О38, Н21, С12.

Author Biography

Inna SHOVKUN, State Organization «Institute for Economics and Forecasting of the National Academy of Sciences of Ukraine», Kyiv, Ukraine

Candidate of Economic Sciences, Senior Researcher, Leading Researcher at the Department of Innovation Policy, Economics and Organization of High Technologies

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Received: March 19, 2025.

Reviewed: April 4, 2025.

Accepted: April 29, 2025.

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Published

01.06.2025

How to Cite

SHOVKUN, Inna. “TAX IMPACT ON INVESTMENTS IN RESEARCH AND DEVELOPMENT OF INDUSTRIAL ENTERPRISES”. Journal of European Economy, vol. 24, no. 2, June 2025, pp. 267-82, doi:10.35774/jee2025.02.267.

Issue

Vol. 24 No. 2 (2025): JOURNAL OF EUROPEAN ECONOMY

Section

Development of Financial Relations

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