Cross-border effects of R&D tax incentives

verfasst von

Bodo Knoll, Nadine Riedel, Thomas Schwab, Maximilian Todtenhaupt, Johannes Voget

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.

Externe Organisation(en)

Ruhr-Universität Bochum
Westfälische Wilhelms-Universität Münster (WWU)
Münchener Gesellschaft zur Förderung der Wirtschaftswissenschaft - CESifo GmbH
Ludwig-Maximilians-Universität München (LMU)
Norwegian School of Economics (NHH)
Universität Mannheim
Zentrum für Europäische Wirtschaftsforschung GmbH (ZEW) Mannheim

Typ

Artikel

Journal

Research policy

Band

50

ISSN

0048-7333

Publikationsdatum

11.2021

Publikationsstatus

Veröffentlicht

Peer-reviewed

Ja

ASJC Scopus Sachgebiete

Strategie und Management, Managementlehre und Operations Resarch, Technologie- und Innovationsmanagement

Ziele für nachhaltige Entwicklung

SDG 9 – Industrie, Innovation und Infrastruktur

Elektronische Version(en)

https://doi.org/10.1016/j.respol.2021.104326 (Zugang: Offen)