Empirical and theoretical literature establishes a strong connection between innovation and economic growth. Policies of incentives for R&D are adopted across the developed countries. The current policies of fiscal incentives for Research and Development (R&D) in Brazil had a big inflexion in the recent history with an upward diversity of instruments of incentive to the firms and increasing resources allocation. Based upon the question if these resources and efforts are effectively stimulating the R&D, this project aims to assess the impact of the instruments of incentive for R&D at the firm level perspective during the period between 2001 and 2008. This will be done estimating econometric models following the specification and methodology proposed by Mulkay et al. (2000).
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