R&D Investments and Tax Incentives: The Role of Intra-Firm Cross-Border Collaboration

• 成果类型: Article
• 署名作者: Huang, Jing; Krull, Linda; Ziedonis, Rosemarie
• 署名单位: Virginia Polytechnic Institute & State University; University of Oregon; Boston University
• 刊物名称: CONTEMPORARY ACCOUNTING RESEARCH
• ISSN/ISSBN: 0823-9150
• DOI: 10.1111/1911-3846.12588
• 发表日期: 2020
• 页码: 2523-2557
• 关键词: innovation; RIGHTS; location; credit; panel; countries; CHOICE

摘要

U.S. multinational corporations increasingly use intra-firm, cross-border research collaboration to disperse R&D across different countries. This paper investigates the implications of such collaboration on the abilities of firms to garner benefits from R&D tax incentives. We find that the association between R&D intensity and tax incentives is three to five times larger when firms have extensive cross-border collaboration connected to a country. We also find that the effect is stronger when local intellectual property protection is weaker and when local innovation resources are higher. Our results suggest that cross-border collaboration helps firms achieve more tax-efficient R&D investments both by reducing the nontax frictions posed by weak intellectual property protection and by increasing the nontax benefits of foreign R&D.