English to Spanish Law/Patents Law: Taxation & Customs Tax Incentives programs ( TIP)

Several terminologies and measurements are involved here:
 Redundancy ratio: the amount of investment that is within the TIP target but would be in place even without the TIP, as a share of the total investment within the target of TIP
 Displacement share: A “net addition” of investment within the TIP target (e.g., the targeted geographic area, or business line, or capital size, or investor’s nationality, etc.) may include a relocation (i.e., displacement) of existing capital from outside of the TIP target
 Crowding out effect: Even if the number of investment projects within the TIP target is a net addition with zero displacement share, they may have crowded out potential investment projects being intended outside of the TIP target in the absence of the TIP. In this case, a potential expansion of the economically more efficient investment activities is crowded out and its “normal” tax base is eroded by the actual expansion of less efficient economic activities within the TIP target, which results in a narrower tax base.