This project aims to investigate the extent to which international tax policy distorts ownership of innovative assets toward tax-advantaged owners and considers its resulting impacts on innovative activity, recognizing that firms invest in foreign markets for both tax and non-tax (strategic) reasons. We explore how differences in taxation of source-based income—distinguishing IP and non-IP income where applicable—influence cross-border acquisition patterns, both in terms of ex-ante characteristics of targets (e.g. location and applicability of preferential IP-box regimes, industry, patent holdings, etc.), as well as ex-post outcomes (e.g. group and affiliate profitability, rates of return, research and development, new patent applications, etc.) while striving to account for potentially confounding strategic and targeted tax incentives. As such, we provide needed evidence on the impact of international tax policies on foreign acquisition patterns, ex-post outcomes, and overall competitiveness of multinational groups in the market for corporate control.
Available at: http://works.bepress.com/sebastien_bradley/8/