Switzerland is a prime location for both domestically owned as well as foreign-owned multinational enterprises (MNEs). In this paper, we review the literature on MNE activity with respect to its main fundamental (non-policy) drivers, the non-fiscal consequences of MNEs for various economic...

This policy brief is aimed at the decision-makers in the Ministry of Finance of Indonesia which seeks the best policy response to the global minimum tax agreed by 137 countries on the 8th October 2021 (Global Base Erosion Rule (GloBE) – also known as the Pillar Two Proposal). It explores how...

The 1990s are often described as the decade when the aerospace industry broke with the past. The drop in military orders that occurred early in the decade, the adoption in both the defence and civil markets of more competitive modes of regulation, the arrival at maturity of several big civil...

In recent years, firms have considerably decentralized their research and development (R&D) activities. Subsidiaries of foreign multinational enterprises (MNEs) are now among the top performers of R&D in many EU and non-EU countries. Specifically, MNE affiliates account for around 20% of total...

This paper analyses the development of the ratio of corporate taxes to wage taxes using a simple political economy model with internationally mobile and immobile firms. Among other results, our model predicts that countries reduce their corporate tax rate, relative to the wage tax, either when...

This paper provides a novel portrait of firms engaging in the international use of inventors. I focus on drug discovery activity of pharmaceutical and biotechnological firms head-quartered in Europe, over the period 1996-2005. An important part of the most high-valued added R&D activities are...

We develop a model in which multinational investors decide about the modes of organization, the locations of production, and the markets to be served. Foreign investments are driven by market-seeking and cost-reducing motives. We further assume that investors face costs of control that vary...

This paper contributes to the debate on the internationalization of the R&D activity of multinational enterprises (MNEs). Specifically, we examine the following research questions: (1) What are the determinants of the MNEs’ R&D internationalization level? (2) What types of internationalization...

In this paper, the author presents the impact of new players and factors in international business activities, which have a direct influence on international economic structure. One of the most important determinants over the last decades has been foreign direct investment, which has encouraged...