DOI: 10.30586/pek.1827083 ISSN: 2587-2567

A Comparative Analysis of Tax-Based R&D Incentives and Innovation Performance in MINT Economies

Cemil Altun
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This study examines the relationship between the structural design of tax-based research and development (R&D) incentives and national innovation performance across the MINT economies (Mexico, Indonesia, Nigeria, and Türkiye) over the 1996–2023 period. Unlike conventional studies that emphasize the generosity of fiscal incentives, this study focuses on implementation quality by evaluating procedural simplicity, administrative accessibility, policy continuity, and firm-level usability as key determinants of policy effectiveness. A comparative longitudinal research design is employed using harmonized indicators from the World Bank and the World Intellectual Property Organization (WIPO). Innovation inputs, including R&D expenditure and researcher density, are examined alongside patents, trademark applications, scientific publications, and high-technology exports. Owing to substantial cross-country data limitations and institutional heterogeneity, qualitative trend comparison is adopted instead of econometric estimation to preserve contextual validity. The findings indicate that administrative accessibility and policy stability are more consistently associated with positive innovation trajectories than high nominal incentive rates. Tax incentives targeting labor costs through wage withholding and social security reliefs are positively related to researcher and technician density, whereas high-technology export performance remains largely conditioned by industrial depth and integration into global value chains. The results further suggest that the effectiveness of tax incentives depends on complementary institutional capacities, particularly skilled human capital and university–industry collaboration. By emphasizing implementation quality rather than fiscal generosity alone, the study provides a comparative perspective for evaluating tax-based R&D incentives in emerging economies and proposes a systematic policy architecture addressing administrative, developmental, and structural domains to strengthen innovation performance.

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