Details
| Originalsprache | Englisch |
|---|---|
| Aufsatznummer | 104326 |
| Fachzeitschrift | Research policy |
| Jahrgang | 50 |
| Ausgabenummer | 9 |
| Frühes Online-Datum | 28 Juli 2021 |
| Publikationsstatus | Veröffentlicht - Nov. 2021 |
| Extern publiziert | Ja |
Abstract
Existing evidence shows that R&D tax incentives boost countries’ private sector R&D. Given the importance of multinational enterprises (MNEs) for private sector innovation, it is unclear, however, whether firms engage in genuinely new R&D or whether R&D is reallocated across borders. Drawing on data on unconsolidated R&D activity of MNEs in Europe, we provide evidence that responses are dominated by cross-border relocations: More generous tax incentives in one country increase MNEs’ R&D investments in affiliates located there, while lowering R&D investments in affiliates of the same MNE group located in other countries. Globally, firms hardly raise their R&D activities when tax incentives become more generous.
ASJC Scopus Sachgebiete
- Betriebswirtschaft, Management und Rechnungswesen (insg.)
- Strategie und Management
- Entscheidungswissenschaften (insg.)
- Managementlehre und Operations Resarch
- Betriebswirtschaft, Management und Rechnungswesen (insg.)
- Technologie- und Innovationsmanagement
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in: Research policy, Jahrgang 50, Nr. 9, 104326, 11.2021.
Publikation: Beitrag in Fachzeitschrift › Artikel › Forschung › Peer-Review
}
TY - JOUR
T1 - Cross-border effects of R&D tax incentives
AU - Knoll, Bodo
AU - Riedel, Nadine
AU - Schwab, Thomas
AU - Todtenhaupt, Maximilian
AU - Voget, Johannes
PY - 2021/11
Y1 - 2021/11
N2 - Existing evidence shows that R&D tax incentives boost countries’ private sector R&D. Given the importance of multinational enterprises (MNEs) for private sector innovation, it is unclear, however, whether firms engage in genuinely new R&D or whether R&D is reallocated across borders. Drawing on data on unconsolidated R&D activity of MNEs in Europe, we provide evidence that responses are dominated by cross-border relocations: More generous tax incentives in one country increase MNEs’ R&D investments in affiliates located there, while lowering R&D investments in affiliates of the same MNE group located in other countries. Globally, firms hardly raise their R&D activities when tax incentives become more generous.
AB - Existing evidence shows that R&D tax incentives boost countries’ private sector R&D. Given the importance of multinational enterprises (MNEs) for private sector innovation, it is unclear, however, whether firms engage in genuinely new R&D or whether R&D is reallocated across borders. Drawing on data on unconsolidated R&D activity of MNEs in Europe, we provide evidence that responses are dominated by cross-border relocations: More generous tax incentives in one country increase MNEs’ R&D investments in affiliates located there, while lowering R&D investments in affiliates of the same MNE group located in other countries. Globally, firms hardly raise their R&D activities when tax incentives become more generous.
KW - Multinational firms
KW - R&D investment
KW - R&D tax incentives
UR - http://www.scopus.com/inward/record.url?scp=85111253675&partnerID=8YFLogxK
U2 - 10.1016/j.respol.2021.104326
DO - 10.1016/j.respol.2021.104326
M3 - Article
AN - SCOPUS:85111253675
VL - 50
JO - Research policy
JF - Research policy
SN - 0048-7333
IS - 9
M1 - 104326
ER -