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Recent innovation literature has documented the benefits of cross-pollination of ideas across a wide set of industries and technology fields in an economy. Industrial and trade policies, by contrast, tend to favor economic specialization through the promotion of selected sectors. In this paper...
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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...
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The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and...
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This paper analyzes externalities of patent box regimes in Europe. Tax reductions in foreign affiliates of a firm that … specific characteristics of patent box regimes, we show that patent box regimes without nexus requirements for tax …-efficient reallocation of patent profits induce positive spillovers within multinational groups. The implementation of a patent box in a …
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