Corporate Taxation and the Choice of Patent Location within Multinational Firms

Tom Karkinsky () and Nadine Riedel
Additional contact information
Tom Karkinsky: Oxford University Centre for Business Taxation

No 914, Working Papers from Oxford University Centre for Business Taxation

Abstract: This paper investigates whether corporate taxation affects the location of patents within a multinational group. We exploit a unique dataset which links patent data from the European Patent Office to micro panel data on European firms for 1995-2003. Our results suggest that the host country’s corporate tax rate exerts a negative effect on the number of patents filed by a multinational subsidiary. The effect is statistically significant and quantitatively large and turns out to be robust against controlling for affiliate size. The findings prevail if we additionally account for royalty withholding taxes. Moreover, binding ‘Controlled Foreign Company’ rules tend to decrease the number of patent applications.

Keywords: corporate taxation; multinational enterprise; profit shifting (search for similar items in EconPapers)
JEL-codes: C33 F23 H25 H26 (search for similar items in EconPapers)
Date: 2009
New Economics Papers: this item is included in nep-acc, nep-ipr, nep-pr~ and nep-pub
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
http://www.sbs.ox.ac.uk/centres/tax/Documents/working_papers/WP0931.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found (http://www.sbs.ox.ac.uk/centres/tax/Documents/working_papers/WP0931.pdf [301 Moved Permanently]--> https://www.sbs.ox.ac.uk/centres/tax/Documents/working_papers/WP0931.pdf)

Related works:
Journal Article: Corporate taxation and the choice of patent location within multinational firms (2012)
Working Paper: Corporate Taxation and the Choice of Patent Location within Multinational Firms (2009)
Working Paper: Corporate Taxation and the Choice of Patent Location within Multinational Firms (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:btx:wpaper:0914

Access Statistics for this paper

More papers in Working Papers from Oxford University Centre for Business Taxation Contact information at EDIRC.
Bibliographic data for series maintained by Dongxian Guo ( this e-mail address is bad, please contact ).