Thinking outside the box: The cross-border effect of tax cuts on R&D q

• 成果类型: Article
• 署名作者: Schwab, Thomas; Todtenhaupt, Maximilian
• 署名单位: University of Munich; Norwegian School of Economics (NHH)
• 刊物名称: JOURNAL OF PUBLIC ECONOMICS
• ISSN/ISSBN: 0047-2727
• DOI: 10.1016/j.jpubeco.2021.104536
• 发表日期: 2021
• 关键词: taxation; Cross-border; INNOVATION; Multinational corporations

摘要

We analyze how a reduction of the tax rate on corporate income from intellectual property (IP) in one country, known as a patent box regime, affects corporate R&D activity in other countries. Combining data on patents and multinational corporation networks, we show that the cross-border effect of tax policy changes depends on whether co-location of the IP and the underlying R&D activity is required. Patent boxes without such a requirement increase patent output in other countries. Patent boxes with such a requirement reduce patent output abroad but only when relocation costs for R&D activity are small. (c) 2021 The Author(s). Published by Elsevier B.V. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).