Intellectual property (IP) box regimes reward ownership of successful technology by imposing a lower tax rate on income derived from the commercialization of IP relative to other sources of business income. Coupled with explicit provisions regarding the eligibility of acquired IP, IP boxes may...

This paper evaluates the initial impacts of patent box regimes in light of their primary stated objectives: stimulating domestic innovation and retaining mobile patent income to limit base erosion. Despite their lack of nexus requirements, we find that patent box regimes yield a 3 percent...