engleski

Research and Development and Tax Incentives

In many countries, tax incentives are a popular mean 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 on the growth of investigations and investment in foreign capital. Innovation is the key element that helps to achieve company's 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 tax incentives' role. States should use their fiscal policy to stimulate investment in research and development through various forms of tax reliefs. The Republic of Croatia applies tax incentives for research and development, but to a significantly less extent than the other European Union countries.

tax incentives; research and development; fiscal policy; direct measures

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