CROSS-COUNTRY EVIDENCE ON THE PRELIMINARY EFFECTS OF PATENT BOX REGIMES ON PATENT ACTIVITY AND OWNERSHIP

Sebastien Bradley, Estelle Dauchy () and Leslie Robinson ()
Additional contact information
Leslie Robinson: Tuck School of Business, Postal: Dartmouth College, Hanover, NH

No 2015-1, School of Economics Working Paper Series from LeBow College of Business, Drexel University

Abstract: This paper evaluates the initial impacts of patent box regimes in light of their primary stated objectives: stimulating domestic innovation and retaining mobile patent income to limit base erosion. Despite their lack of nexus requirements, we find that patent box regimes yield a 3 percent increase in new patent applications for every percentage point reduction in the tax rate on patent income. We find no significant impact of these regimes on deterring outward cross-border attribution of patent ownership, or on attracting ownership of foreign inventions. Increased patenting activity hence appears focused on inventions involving co-located (domestic) patent owners and inventors.

Keywords: patent box; tax policy; innovation; base erosion (search for similar items in EconPapers)
JEL-codes: H25 H32 K34 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2015-10-01
New Economics Papers: this item is included in nep-cse, nep-ino, nep-ipr, nep-pr~ and nep-tid
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Citations: View citations in EconPapers (35)

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Related works:
Journal Article: Cross-Country Evidence on the Preliminary Effects of Patent Box Regimes on Patent Activity and Ownership (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:ris:drxlwp:2015_001

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