Foreign-owned subsidiaries make significant contributions to national Research and Development (R&D) in many host countries. Policymakers often support subsidiaries through R&D grants and R&D tax credits. A key objective of this funding is to leverage R&D-driven firm performance benefits for the...

Developing countries frequently offer tax incentives and even subsidize the entry and operation of foreign firms. I examine the optimality of such policies in an economy where growth is driven by entrepreneurial know-how, a skill that is continuously updated on the basis of the productive ideas...

Foreign-owned subsidiaries make significant contributions to national Research and Development (R&D) in many host countries. Policymakers often support subsidiaries through R&D grants and R&D tax credits. A key objective of this funding is to leverage R&D-driven firm performance benefits for the...

This paper examines the location of foreign research and development (Ramp;D) establishments in China and reveals that such facilities are overly concentrated in Shanghai and Beijing, the two first-tier cities. We argue that the spatial concentration of Ramp;D in Shanghai and Beijing is more...

This paper examines the effect of foreign direct investment (FDI) on domestic innovation based on a data set covering the pharmaceutical industries across 29 provinces in the People's Republic of China (PRC) over the period 1998-2007. We show that there is a negative horizontal spillover effect...

This paper examines the challenges of foreign R&D in China, based on interviews with 32 senior R&D managers. It confirms the findings from previous studies that many barriers still exist in China for foreign R&D, and such barriers include institutional environment, infrastructure and labor...

We analyze how a reduction of the tax rate on corporate income from intellectual property (IP) in one country, known as a patent box regime, affects corporate R&D activity in other countries. Combining data on patents and multinational corporation networks, we show that the cross-border effect...

This paper analyzes externalities of patent box regimes in Europe. Tax reductions in foreign affiliates of a firm that also provide a profit shifting opportunity reduce the user cost of capital and thereby increase domestic investment. We test this mechanism for the case of research activity. By...

In this paper, I consider optimal minimum taxation and the optimal taxation of intellectual property (IP) income in a setting, in which research and development (R&D) activities of multinational enterprises (MNEs) are suboptimally low due to positive cross-country spillovers resulting from R&D...

Export is an important factor to improve growth and welfare especially for industrialized small, open economies such as Belgium. Policy may be interested in key variables that can influence export. This paper finds evidence for the importance of R&D for export activities using Belgian firm-level...