Tax Policy for Innovation
43 Pages Posted: 22 Apr 2019 Last revised: 4 Jun 2023
Date Written: April 2019
Abstract
A large number of countries around the world now provide some kind of tax incentive to encourage firms to undertake innovative activity. This paper presents the policy rationale for these incentives, discusses their design and potential effectiveness, and reviews the empirical evidence on their actual effectiveness. The focus is on the two most important and most studied incentives: R&D tax credits and super deductions, and IP boxes (reduced corporate taxes in income from patents and other intellectual property).
Suggested Citation: Suggested Citation
Hall, Bronwyn H., Tax Policy for Innovation (April 2019). NBER Working Paper No. w25773, Available at SSRN: https://ssrn.com/abstract=3375834
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