Profit Taxation, R&D Spending, and InnovationIndian Rupee

• 成果类型: Article
• 署名作者: Lichter, Andreas; Loffler, Max; Isphording, Ingo e.; Nguyen, Thu-van; Poege, Felix; Siegloch, Sebastian
• 署名单位: Heinrich Heine University Dusseldorf; Maastricht University; IZA Institute Labor Economics; Bocconi University; University of Cologne
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20220580
• 发表日期: 2025
• 页码: 432-463
• 关键词: corporate-taxation; patent; incentives; taxes; FIRMS; spillovers; INVESTMENT; citations; location; dividend

摘要

We study how profit taxes affect establishments' R&D activities. Relying on detailed panel data of R&D-active firms in Germany over two decades, we exploit identifying variation induced by more than 10,000 municipal changes in the local business tax rate and federal tax reforms with locally varying effects. Using event-study techniques, we find a sizable, negative effect of profit taxes on establishments' total R&D spending and patents filed. Zooming into the innovation production process, we uncover substantial heterogeneity in the impact of profit taxation for various R&D input factors, among firm characteristics, and for different types of research projects. (JEL D22, G32, H25, H32, H71, O31, O34)