Designing R&D Incentives in Hong Kong

22 Pages Posted: 31 Jan 2019

See all articles by Noam Noked

Noam Noked

The Chinese University of Hong Kong (CUHK) - Faculty of Law

Date Written: January 23, 2019

Abstract

The Hong Kong government has recently enacted legislation granting tax benefits for R&D expenses to boost investment in R&D in Hong Kong. This Article analyzes what would be the optimal design of R&D incentives in Hong Kong, and concludes that the new tax benefits for R&D are unlikely to increase R&D investment in Hong Kong in the most cost-effective manner. The Hong Kong government should consider replacing these tax benefits with other, more effective R&D subsidies.

Keywords: R&D Incentives, Innovation, Research and Development, R&D, Tax Benefits, Super Deduction, Tax Credit, Subsidy, Hong Kong

JEL Classification: K34, O31, O38

Suggested Citation

Noked, Noam, Designing R&D Incentives in Hong Kong (January 23, 2019). University of Pennsylvania Asian Law Review, Vol. 14, No. 1, 41, 2019, Available at SSRN: https://ssrn.com/abstract=3178640

Noam Noked (Contact Author)

The Chinese University of Hong Kong (CUHK) - Faculty of Law ( email )

6/F, Lee Shau Kee Building
Shatin, New Territories
Hong Kong, Sha Tin
Hong Kong

HOME PAGE: http://www.law.cuhk.edu.hk/app/people/prof-noam-noked/

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