Tax Impact on Investments in Research and Development of Industrial Enterprises

The article substantiates the feasibility of using fiscal incentives to stimulate business investment in research and development (R&D) to intensify production innovations and ensure high-quality economic growth. In order to determine the potential impact of tax instruments, the author assesses the dependence of R&D expenditures on changes in the tax burden using econometric modeling methods. This approach has not yet been adopted by Ukrainian researchers. The present study sought to investigate the non-linear negative effects on R&D investment by enterprises from an increase in the tax burden. The statistical estimates obtained confirmed the significance of tax instruments in stimulating industrial business investment in R&D. This finding provides a rationale for recommending the introduction of appropriate incentives, which are currently absent within the Ukrainian legislation.