 Tax Policy and the Globalisation of R&DDepartmental Working Papers from The Australian National University, Arndt-Corden Department of Economics Abstract: This paper examines the factors influencing the globalisation of R&D, with a particular focus on the role of tax policy, using panel data for 25 OECD countries over the period 1980- 2005. Two measures of R&D internationalisation are considered - R&D directly financed from abroad and R&D expenditure by foreign affiliates of US MNEs. The econometric analysis, which appropriately control for other determinants of inter-country differences in R&D investment, finds no evidence that host country R&D tax policy is an important determinant of MNE R&D location decisions or in attracting additional cross-border contract R&D. There is evidence that affiliate fixed capital stock and total sales are strong determinants of R&D performed by affiliates of US MNEs. Controlling for these variables, host country attributes seemed to be less important. In the case of cross-border contract R&D, host country expenditure on R&D via institutions of higher education is also found to be important. Keywords: Globalisation of R&D; tax policy; foreign direct investment; multinational enterprises (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pas:papers:2009-03 Access Statistics for this paper More papers in Departmental Working Papers from The Australian National University, Arndt-Corden Department of Economics Contact information at EDIRC. |
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