nep-ipr New Economics Papers
on Intellectual Property Rights
Issue of 2018‒09‒17
three papers chosen by
Giovanni Ramello
Università degli Studi del Piemonte Orientale “Amedeo Avogadro”

  1. Should there be lower taxes on patent income? By Fabian Gaessler; Bronwyn H. Hall; Dietmar Harhoff
  2. Money for Something: The Links between Research Funding and Innovation By Glennon, Britta; Lane, Julia; Sodhi, Ridhima
  3. Dovetailing Fairtrade And Organic Certification: How The Twin Can Meet? By Ruben, Ruerd

  1. By: Fabian Gaessler (Institute for Fiscal Studies); Bronwyn H. Hall (Institute for Fiscal Studies and University of California, Berkeley); Dietmar Harhoff (Institute for Fiscal Studies and University of Munich)
    Abstract: A “patent box” is a term for the application of a lower corporate tax rate to the income derived from the ownership of patents. This tax subsidy instrument has been introduced in a number of countries since 2000. Using comprehensive data on patent filings at the European Patent Office, including information on ownership transfers pre- and post-grant, we investigate the impact of the introduction of a patent box on international patent transfers, on the choice of ownership location, and on invention in the relevant country. We find that the impact on transfers is small but present, especially when the tax instrument contains a development condition and for high value patents (those most likely to have generated income), but that invention itself is not affected. This calls into question whether the patent box is an effective instrument for encouraging innovation in a country, rather than simply facilitating the shifting of corporate income to low tax jurisdictions.
    Keywords: patent box, IP box, innovation tax, BEPS, EPO, invention incentive, patent ownership
    Date: 2018–07–25
  2. By: Glennon, Britta (Carnegie Mellon University); Lane, Julia (New York University); Sodhi, Ridhima (New York University)
    Abstract: Federal research funding to universities is often based on a desire to stimulate innovation – so that they spend taxpayer money for "something". There is growing understanding of the need to change the structure of research funding in order to do so; less is known about the effectiveness of different organizational structures. Yet, as Jones has pointed out, increasing the efficiency with which we transfer knowledge from one generation to the next could have important implications for innovation and productivity growth. In this paper we use new data to examine how the main organizational structure used to train the next generation of scientists and inventors – teams funded by research grants – leads to innovative activity as measured by patents.
    Keywords: UMETRICS, innovation, patents, research policy, teams
    JEL: O30 O31 O38
    Date: 2018–07
  3. By: Ruben, Ruerd
    Abstract: Impact analysis of effects of Fairtrade or organic certification for agro commodities are based on different pathways that pursue changes in prices, yield, net income and agricultural practices. Field studies using robust impact methods mostly register mixed results. We intend to identify possible complementarities between Fairtrade and organic standards for coffee and bananas in Peru. Since only minor output price differences are observed, and positive income effects depend mostly on yield increase due to improved input applications. Access to inputs and finance are thus critically important to enable the transition towards certified production. Impact finance may become a challenging alternative.
    Keywords: Agribusiness
    Date: 2017–08–29

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