In a Volatile, Uncertain, Complex and Ambiguous world, technology disrupts and globalization magnifies and propagates the dramatic changes in the workplace, in communications and transactions, and the way companies operate and create value. New groups of multinational companies emerge ("Digital...

This paper studies the effects of investment tax credits on firms’ input choices by exploitinga sudden shift in the tax credit rate by firm size for manufacturing firms in Germany in 1999. I find that more generous tax credits lead to a significant increase in both investment and employment,...