Arbeitspapier
Profit Taxation, R&D Spending, and Innovation
We study how profit taxation affects plants' R&D spending and innovation activities. Relying on geocoded survey panel data which approximately covers the universe of R&D-active plants in Germany, we exploit around 7,300 changes in the municipal business tax rate over the period 1987–2013 for identification. Applying event study models, we find a negative and statistically significant effect of an increase in profit taxation on plants' R&D spending with an implied long-run elasticity of −1.25. Reductions in R&D are particularly strong among more credit-constrained plants. In contrast, homogeneity of effects across the plant size distribution questions policy makers common practice to link targeted R&D tax incentives to plant size. We further find lagged negative effects on the (citation-weighted) number of filed patents.
- Sprache
-
Englisch
- Erschienen in
-
Series: IZA Discussion Papers ; No. 14830
- Klassifikation
-
Wirtschaft
Business Taxes and Subsidies including sales and value-added (VAT)
Fiscal Policies and Behavior of Economic Agents: Firm
Innovation and Invention: Processes and Incentives
Management of Technological Innovation and R&D
- Thema
-
corporate taxation
firms
R&D
innovation
patents
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Lichter, Andreas
Löffler, Max
Isphording, Ingo E.
Nguyen, Thu-Van
Pöge, Felix
Siegloch, Sebastian
- Ereignis
-
Veröffentlichung
- (wer)
-
Institute of Labor Economics (IZA)
- (wo)
-
Bonn
- (wann)
-
2021
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:43 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Lichter, Andreas
- Löffler, Max
- Isphording, Ingo E.
- Nguyen, Thu-Van
- Pöge, Felix
- Siegloch, Sebastian
- Institute of Labor Economics (IZA)
Entstanden
- 2021
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