Many countries provide financial incentives to spur innovation, ranging from tax incentives to research and development … grants. In this paper, we study how such financial incentives affect individuals' decisions to pursue careers in innovation … innovation are extremely skewed – with the top 1% of inventors collecting more than 22% of total inventors' income – and are …

labor supply, tax avoidance and evasion, and geographic mobility. But one margin that taxes may affect -- innovation -- is … less frequently considered. Conceptually, taxes reduce the expected net returns to innovation inputs and can reduce … innovation. Much like other margins of responses to taxes, this efficiency cost must be taken into account. Innovation is done by …