Taxation, R&D Tax Incentives and Patent Application in Europe

39 Pages Posted: 9 Apr 2011

See all articles by Christof Ernst

Christof Ernst

ZEW – Leibniz Centre for European Economic Research

Christoph Spengel

Centre for European Economic Research (ZEW)

Date Written: April 1, 2011

Abstract

The focus of this paper is on effects from tax incentives for research and development inputs (R&D) and corporate income tax on business R&D and patenting behaviour. First, we provide a theoretical discussion of tax planning with R&D and intellectual property (IP) ownership. Further, we employ firm-specific micro-data on patent applications of European corporations at the European Patent Office to test reactions on changes in R&D tax incentives and corporate tax burden. We find a positive impact of R&D tax incentives and a negative impact of the statutory corporate income tax rate on patenting. R&D incentives rather influence the tendency to invest in R&D, whereas the tax burden rather influences the scale of R&D investment and the count of patent applications.

Keywords: Patent, R&D, Tax Incentives, Taxation, EU

JEL Classification: H25, H26, O30

Suggested Citation

Ernst, Christof and Spengel, Christoph, Taxation, R&D Tax Incentives and Patent Application in Europe (April 1, 2011). ZEW - Centre for European Economic Research Discussion Paper No. 11-024, Available at SSRN: https://ssrn.com/abstract=1805762 or http://dx.doi.org/10.2139/ssrn.1805762

Christof Ernst (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

Christoph Spengel

Centre for European Economic Research (ZEW) ( email )

D-68161 Mannheim
Germany

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
597
Abstract Views
2,832
rank
51,760
PlumX Metrics