Tax Policy for Innovation

Bronwyn H Hall ()

No 506, National Institute of Economic and Social Research (NIESR) Discussion Papers from National Institute of Economic and Social Research

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).

Keywords: R&D tax credit; patent box; super deduction; IP box; tax subsidy; innovation (search for similar items in EconPapers)
JEL-codes: H25 O32 O38 (search for similar items in EconPapers)
Date: 2019-06
New Economics Papers: this item is included in nep-acc, nep-eur, nep-ino, nep-ipr, nep-pbe, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

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Related works:
Chapter: Tax Policy for Innovation (2020)
Working Paper: Tax Policy for Innovation (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:nsr:niesrd:506

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