This paper analyses competition and fiscal incentives impacts on Brazilian manufacturing firms' R&D and innovative performance. We consider domestic and foreign competition, informatics law incentives and R&D and innovation law incentive, and many kinds of R&D (internal, external and continuos) and innovative activity (process and product, to Brazilian market only and to firms' main market). Our empirical evidence from an unbalanced panel of microdata from Brazilian innovation survey (Pintec) shows that both law incentives are important to R&D and innovation firms' performance, local competition as well, but with quite different intensities. Foreign competition has limited and weak impact. This set of results is important to policymakers optimize incentives and competition level on innovation policy design.
Competition. Incentives. R&D. Innovation. Brazilian manufacturing.