Is a higher rate of R&D tax credit a panacea for low levels of R&D in disadvantaged regions?

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This paper studies the impact of RD this would be expensive in terms of the net exchequer cost.

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Effectiveness and efficiency of SME innovation policy (2013, methodology): “Alternatively they employ a Cobb-Douglas production function to predict output (for instance Harris et al 2009).”
R&D policy instruments – a critical review of what we do and don’t know (2016, background): “However, in economically disadvantaged regions the level of R&D tax credit may have to be substantially higher (Harris, Li, and Trainor 2009).”
Public R&D Policies and Private R&D Investment: A Survey of the Empirical Evidence (2015, methodology): “Applying a similar estimation approach, Harris et al. (2009) obtain a long-run elasticity of around –1.4 for a panel of manufacturing plants in Northern Ireland for 1998–2003, and an elasticity of between –1.5 and –1.8 is reported in Parisi and Sembenelli (2003) for a panel of Italian firms for…”