Lichter, Andreas; Löffler, Max; Isphording, Ingo Eduard; … - 2021
We study how profit taxation affects plants' R&D spending and innovation activities. Relying on geocoded survey panel … statistically significant effect of an increase in profit taxation on plants' R&D spending with an implied long-run elasticity of -1 ….25. Reductions in R&D are particularly strong among more credit-constrained plants. In contrast, homogeneity of effects across the …