2017年-世界发展银行全球_Ukraine_Fiscal_Incentives_for_Science_Technology_and_Innovation_Activities___Good_Practice_Review_Report_49页_1mb

Summary of the FISCAL INCENTIVES FOR SCIENCE, TECHNOLOGY, AND INNOVATION ACTIVITIES: GOOD PRACTICE REVIEW REPORT – UKRAINE

Core Content

This report provides an analysis of fiscal incentives for science, technology, and innovation (STI) activities, focusing on good practices and policy recommendations for Ukraine. It is part of the World Bank's Ukraine Technical Assistance on Innovation Support project, which aims to improve the innovation ecosystem in the country. The report outlines various fiscal tools used globally to support R&D and innovation, and evaluates their effectiveness in the Ukrainian context.

Main Points

1. Ukraine's Innovation Context

• Ukraine has a historical legacy of high-skilled scientists and engineers.
• However, the science and technology base has been in decline due to poor governance, weak institutions, and inefficiencies in public funding allocation.
• R&D spending as a share of GDP has been low and declining, with a significant drop in the early 2000s.
• The number of patent applications per million population is much lower than that of other countries, indicating a lag in innovation output.

2. Current Institutional Setting in Ukraine

• Ukraine has a statutory corporate income tax rate of 18%, which is relatively low compared to other countries.
• The country has a Simplified Tax System (STS) for SMEs, which reduces administrative burdens but may distort firm sizes and lead to tax avoidance strategies.
• The tax system is complex, contributing to a large shadow economy and tax base erosion.
• Ukraine has introduced some fiscal incentives for investment in priority industries, including customs duty exemptions and VAT postponement.

3. Fiscal Incentive Schemes for STI

• R&D Tax Incentives: Not currently in place in Ukraine.
• Capital Allowances: Preferential depreciation rates for fixed assets.
• Income and Capital Gains Tax Relief: Available for foreign investors, SMEs, and specific sectors.
• SEZs (Special Economic Zones): Established in Crimea and Sevastopol, offering tax breaks including full exemption from corporate and individual income taxes.
• VAT/Customs Duty Exemptions: For imported inputs in priority industries.
• Patent Box Regimes: Not yet implemented in Ukraine.

4. Economic Rationale for Fiscal Incentives

• Market Failures in Innovation:
  • Imperfect Appropriability of Knowledge: Knowledge generated from R&D is a public good, leading to spillovers and underinvestment.
  • Informational Asymmetries: Innovators often lack access to external financing due to uncertainty about the value of their projects.
• Government Role: To correct these market failures, governments may use direct subsidies or tax incentives to encourage R&D and innovation.

5. Good Practices and Policy Recommendations

• Fiscal incentives should be part of a broader strategy to strengthen the science and technology base.
• The effectiveness of fiscal incentives depends on the national innovation system and the ability to implement them efficiently.
• Ukraine should focus on capacity building within the Ministry of Finance to:
  • Conduct cost-benefit analyses for potential fiscal incentives.
  • Collect reliable data on private R&D and innovation.
  • Evaluate projects related to science and technology.
• Macro Stability and Business Climate: Should be prioritized before implementing tax incentives.
• Systematic Monitoring and Evaluation: Is essential to assess the success of fiscal incentive policies.
• Administrative Efficiency and Transparency: Are critical for the successful implementation of fiscal incentives.

Key Information

• R&D Inputs and Outputs: R&D is a key driver of future innovation. However, Ukraine's R&D inputs have been declining, with a 30% drop in R&D personnel per million population between 2006 and 2014.
• Tax Compliance and Burden: Filing taxes in Ukraine takes about 355 hours per year, significantly higher than the OECD average of 163 hours.
• FDI and Tax Incentives: While Ukraine has aimed to attract FDI through tax incentives, the lack of a robust investment promotion framework and political instability has hindered effectiveness.
• Policy Challenges: Tax incentives in Ukraine have been ineffective due to administrative complexities, lack of transparency, and insufficient monitoring.

Conclusion

The report emphasizes the need for a tailored and well-designed policy mix to support STI in Ukraine. It highlights the importance of macroeconomic stability, efficient tax administration, and reliable data collection. The recommendations suggest a focus on capacity building, policy coherence, and the integration of fiscal incentives into a broader innovation strategy.