We analyze behavioral additionality effects related to wage-based R&D tax credits and their dependence on the joint use of R&D subsidies. Using a matching approach combined with multivariate probit analyses on survey data of Belgian firms in 2006-2010, we find that tax credits cause firms not to...

This paper starts from the observation that the majority of firms in Belgium that were eligible for a newly introduced R&D tax credit system does not use it, or is slow to adopt, despite significant potential cost savings. We hypothesize that the R&D support landscape is complex for firms to...

Survey evidence suggests that firms are insufficiently aware of newly introduced R&D support measures due to the complexity of the public support landscape. As a result, adoption is slow and incomplete, implying that eligible firms leave money on the table. We hypothesize that a key coping...