countries can simultaneously use patent boxes and R&D subsidies to promote innovation. We show that when countries set their tax … policies unilaterally, innovation is fostered, at the margin, only by the R&D subsidy. The patent box tax rate is instead …

patent boxes and R&D subsidies to promote innovation. We show that when countries set their tax policies non …-cooperatively, innovation is fostered, at the margin, only by the R&D subsidy, whereas the patent box tax rate is targeted at attracting …