innovate or not, we propose that this decision is actually taken by their employees (agents). We compare the two tax incentives … tax incentives are found to play a role in fostering innovation. In addition we find important effects on the incentives …

knowledge economy. Corporate taxes and labor income taxes can affect both the firm owner’s and the employee’s incentives to … incentives and reductions in the tax rate levied on profit sharing schemes. This complementarity holds, albeit with different … relative importance for the two tax incentives, also with non-deductible labor costs, with a stochastic innovation value …