Abstract
Existing evidence shows that R&D tax incentives boost countries' private sector R&D. Given the importance of multinational enterprises (MNEs) for private sector innovation, it is unclear, however, whether firms engage in genuinely new R&D or whether R&D is reallocated across borders. Drawing on data on unconsolidated R&D activity of MNEs in Europe, we provide evidence that responses are dominated by cross-border relocations: More generous tax incentives in one country increase MNEs' R&D investments in affiliates located there, while lowering R&D investments in affiliates of the same MNE group located in other countries. Globally, firms hardly raise their R&D activities when tax incentives become more generous.
Dokumententyp: | Zeitschriftenartikel |
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Fakultät: | Volkswirtschaft |
Themengebiete: | 300 Sozialwissenschaften > 330 Wirtschaft |
ISSN: | 0048-7333 |
Sprache: | Englisch |
Dokumenten ID: | 99632 |
Datum der Veröffentlichung auf Open Access LMU: | 05. Jun. 2023, 15:32 |
Letzte Änderungen: | 17. Okt. 2023, 15:02 |