Extrafiscality and incentives for technological innovation

Abstract

This article seeks to reflect on the theoretical foundations of extrafiscality and its application in encouraging technological innovation, showing how it has evolved in the last decade Brazilian law with respect to the stimulus through tax waiver, the research and development ( R & D). In particular, we analyze the case of the Good Law (Law 11.196 / 2005) and it appears that, despite the increase in the number of companies now access the tax incentive program, its scope is still limited, and that the Brazilian companies still invest little in research and development, which can be attributed to the risk that the business is, the conservative culture, internal bureaucracy, beyond the legal uncertainty surrounding the regulatory framework.