The federal government deploys a variety of institutions — patent, tax, and spending, among others — to encourage innovation. But legal scholars have given short shrift to how these institutions should be coordinated. In this Note, I argue that tax credits could be used to ameliorate a...

We consider the optimal factor income taxation in a standard R&D model with technical change represented by an increase in the variety of intermediate goods. Redistributing the tax burden from labor to capital will in most cases increase the employment rate in equilibrium. This has opposite...

The quantitative implications of income taxation for innovation and aggregate productivity growth are evaluated in the context of a Schumpeterian model of innovation-led growth. In the model, innovation comes from entrant firms creating new products and from incumbent firms improving own...

This study develops an R&D-based growth model with taxation to explore the heterogeneous effects of intellectual property rights (IPR) protection on innovation of firms with different tax rates. Our theoretical analysis shows that strengthening IPR stimulates innovation, and a higher tax rate...

In endogenous growth models with innovation and capital accumulation, Arnold (1998) and Blackburn, Hung and Pozzolo (2000) show that long-run growth of per capita income is independent of innovation activities; it is solely determined by preferences and the human capital accumulation technology....