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Do Corporate Taxes Hinder Innovation?

Author

Listed:
  • Abhiroop Mukherjee

    () (Associate Professor, Department of Finance, Hong Kong University of Science and Technology
    Institute for Emerging Market Studies, Hong Kong University of Science and Technology)

  • Alminas Zaldokas

    () (Assistant Professor, Department of Economics, Hong Kong University of Science and Technology
    Institute for Emerging Market Studies, Hong Kong University of Science and Technology)

Abstract

Abhiroop Mukherjee and Alminas Zaldokas, HKUST IEMS Faculty Associates, examined how tax changes influence patenting activity in corporations, and found that tax increases would likely lead to lower innovation, but it would not be easy to reverse these losses quickly by cutting taxes back later.

Suggested Citation

  • Abhiroop Mukherjee & Alminas Zaldokas, 2017. "Do Corporate Taxes Hinder Innovation?," HKUST IEMS Thought Leadership Brief Series 2017-16, HKUST Institute for Emerging Market Studies, revised Jul 2017.
  • Handle: RePEc:hku:briefs:201616
    as

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    References listed on IDEAS

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    More about this item

    Keywords

    corporate governance; development; emerging market and developing economies; emerging markets; innovation; patents; R&D; research and development;
    All these keywords.

    JEL classification:

    • G30 - Financial Economics - - Corporate Finance and Governance - - - General
    • G38 - Financial Economics - - Corporate Finance and Governance - - - Government Policy and Regulation
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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