SkatteFUNN was introduced in 2002 as a measure to increase research and development in the Norwegian private sector and has grown to become one of the most important policy instruments for this task. The scheme has previously been evaluated in 2008. The Ministry of Finance has commissioned Samfunnsøkonomisk analyse AS to conduct a new evaluation, presented in this report. The evaluation has been completed in accordance with the European Commission Staff Working Document, Common methodology for State aid evaluations.
We conclude that the benefits of SkatteFUNN, including increased R&D investment, innovation and productivity and beneficial effects on competition and trade, very likely exceed the costs of negative distortive effects and misuse. This leads us to a clear recommendation that SkatteFUNN be continued.
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