targeted tax competition may lead to higher welfare for the region as a whole than lump-sum subsidies when the difference in …

countries can simultaneously use patent boxes and R&D subsidies to promote innovation. We show that when countries set their tax … strategic competition in direct R&D subsidies to attract physical R&D units instead of intangible patents. …

Tax subsidies alter the distribution of tax burdens in ways that blur the ability of researchers and policymakers to … of tax subsidies granted on a discriminatory basis. We find that better-governed countries are more likely to grant … subsidies and to direct larger amounts of this “tax aid” toward mobile firms (i.e., firms that are part of a multinational …