This study examines the effectiveness of R&D tax incentives using an unbalanced panel of 434 Canadian firms. Not all firms in the sample are R&D performers. A B-index summarizing the various tax incentives for R&D is constructed for each firm, taking into account individual ceilings in the use...

The standard measure of productivity growth is the Solow residual.Its evaluation requires data on factor input shares or prices.Since these prices are presumed to match factor productivities, the standard procedure amounts to accepting at face value what is supposed to be measured.In this paper...