Multi-Jurisdictional Tax Incentives and the Location of Innovative Activities
| dc.contributor.author | MacDonald, Christy | |
| dc.date.accessioned | 2009-08-25T15:41:42Z | |
| dc.date.available | 2009-08-25T15:41:42Z | |
| dc.date.issued | 2009-08-25T15:41:42Z | |
| dc.date.submitted | 2009 | |
| dc.description.abstract | In this dissertation, I explore the effect of tax incentives on where U.S. multinationals decide to locate their innovative activities worldwide. Research and development (R&D) tax incentives offered by foreign countries and differences between U.S. and foreign tax rates provide opportunities that may influence where multinationals decide to locate their innovative activities. Using firm-level patenting data that identifies the country-specific location of innovations from 1986 to 2000, I examine the relation between innovative activities performed in a foreign country and these tax incentives using the Heckman (1979) two step estimation approach. I find evidence that the foreign percentage of innovative activities is associated with the attractiveness of foreign R&D tax incentives and with an increase in the effect of U.S. R&D allocation rules. In addition, the results suggest that firms in excess foreign tax credit positions decrease the amount of R&D activities in a foreign location with increased foreign tax rates, consistent with income shifting incentives. In contrast, I find that the firms in deficit foreign tax credit positions increase their foreign R&D activities with increasing foreign tax rates. This study is the first to examine and provide evidence of the influence of foreign R&D tax incentives and income shifting incentives on a U.S. multinational’s decision on where to locate R&D activities. | en |
| dc.identifier.uri | http://hdl.handle.net/10012/4595 | |
| dc.language.iso | en | en |
| dc.pending | false | en |
| dc.publisher | University of Waterloo | en |
| dc.subject | patents | en |
| dc.subject | tax incentives | en |
| dc.subject | multi-jurisdictional | en |
| dc.subject | innovative activities | en |
| dc.subject.program | Accounting | en |
| dc.title | Multi-Jurisdictional Tax Incentives and the Location of Innovative Activities | en |
| dc.type | Doctoral Thesis | en |
| uws-etd.degree | Doctor of Philosophy | en |
| uws-etd.degree.department | School of Accountancy | en |
| uws.peerReviewStatus | Unreviewed | en |
| uws.scholarLevel | Graduate | en |
| uws.typeOfResource | Text | en |