Towards a new innovation policy in Cuba: Proposal for the introduction of a R&D fiscal incentive program

New R&D fiscal incentive system in Cuba

An increasing number of emerging economies (among others China, India, Russia, South Africa, and Brazil) have recently introduced R&D tax credit schemes to support the innovative activities of their domestic firms. Drawing insights from these international experiences, this paper proposes a new R&D fiscal incentive system in Cuba.

Mixed character

The authors argue that, to take the specific characteristics of a transition economy like that of Cuba into account, the new program should have a mixed character: it should be volume-based for large State-owned enterprises and incremental for the emerging group of smaller private companies. The fiscal incentive system should allow firms to receive relatively high super-deductions in order to provide an effective stimulus to their innovation and imitation activities. The new R&D policy would contribute to addressing the structural weaknesses which characterize the Cuban national innovation system, and thus enable firms to reap the opportunities provided by the changing international context.


Published Dec. 7, 2015 9:42 AM - Last modified Dec. 7, 2015 9:42 AM