Tax incentives have no effect on innovation & decrease quality of research.
Martin 23 [Ralf Martin, Antoine Dechezleprêtre, Elias Einiö, Kieu-Trang Nguyen and John Van Reenen; Ralf Martin is associate professor of economics at Imperial College London, and the program director for growth at LSE's Centre for Economic Performance (CEP); "Do Tax Incentives Increase Firm Innovation? An RD Design for R&D, Patents, and Spillovers."; November 2023; https://www.aeaweb.org/articles?id=10.1257/pol.20200739]//araghvn
In recent years, many of the world's most advanced economies have changed their approach from directly funding research and development (R&D) to relying more heavily on corporate tax breaks. But there’s a long-standing concern among economists that corporate tax incentives increase R&D spending without having much effect on innovation: companies may simply relabel existing projects to take advantage of the tax relief or only expand very low-quality R&D projects.