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

Publikation: Beitrag in FachzeitschriftArtikelForschungPeer-Review

Autorschaft

  • Thomas Schwab
  • Maximilian Todtenhaupt

Externe Organisationen

  • Ludwig-Maximilians-Universität München (LMU)
  • Norwegian School of Economics (NHH)
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Details

OriginalspracheEnglisch
Aufsatznummer104536
FachzeitschriftJournal of public economics
Jahrgang204
Frühes Online-Datum5 Nov. 2021
PublikationsstatusVeröffentlicht - Dez. 2021
Extern publiziertJa

Abstract

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.

ASJC Scopus Sachgebiete

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Thinking outside the box: The cross-border effect of tax cuts on R&D. / Schwab, Thomas; Todtenhaupt, Maximilian.
in: Journal of public economics, Jahrgang 204, 104536, 12.2021.

Publikation: Beitrag in FachzeitschriftArtikelForschungPeer-Review

Schwab T, Todtenhaupt M. Thinking outside the box: The cross-border effect of tax cuts on R&D. Journal of public economics. 2021 Dez;204:104536. Epub 2021 Nov 5. doi: 10.1016/j.jpubeco.2021.104536
Schwab, Thomas ; Todtenhaupt, Maximilian. / Thinking outside the box : The cross-border effect of tax cuts on R&D. in: Journal of public economics. 2021 ; Jahrgang 204.
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