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Article
Cross-Country Evidence on the Preliminary Effects of Patent Box Regimes on Patent Activity and Ownership
National Tax Journal (2015)
  • Sebastien J Bradley, Drexel University
  • Estelle Dauchy
  • Leslie Robinson, Dartmouth College
Abstract

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 increase in new patent applications for every percentage point reduction in the tax rate on patent income. We find no significant impact of these regimes on deterring outward cross-border attribution of patent ownership, or on attracting ownership of foreign inventions. Increased patenting activity hence appears focused on inventions involving co-located (domestic) patent owners and inventors.

Keywords
  • patent box,
  • tax policy,
  • innovation,
  • base erosion
Publication Date
December, 2015
Citation Information
Sebastien J Bradley, Estelle Dauchy and Leslie Robinson. "Cross-Country Evidence on the Preliminary Effects of Patent Box Regimes on Patent Activity and Ownership" National Tax Journal Vol. 68 Iss. 4 (2015)
Available at: http://works.bepress.com/sebastien_bradley/9/