THE EU TAX TREATMENT COMPETITION FOR KNOWLEDGE BASED CAPITAL – THE SPECIAL CASE OF R&D
THE EU TAX TREATMENT COMPETITION FOR KNOWLEDGE BASED CAPITAL – THE SPECIAL CASE OF R&D
THE EU TAX TREATMENT COMPETITION FOR KNOWLEDGE BASED CAPITAL – THE SPECIAL CASE OF R&D
Author(s): Cătălina CozmeiSubject(s): Economy, National Economy, Financial Markets, Public Finances
Published by: Research Publishing SRL
Keywords: tax policy; competitiveness; knowledge-based-capital; cluster research; R&D; EU;
Summary/Abstract: Globalization spurs the diffusion of knowledge and encourages firms to incorporate investments in innovation in their portfolios because knowledge based capital (research & development, intellectual property, organisational capital, skills etc.) is a key driver for competitiveness on all levels. This article aims to emphasize the differences in the R&D tax policy mix as a proxy for the knowledge based capital and analyse some R&D indicators for a number of 20 EU member states in order to sort and classify those countries in terms of R&D tax policy effectiveness. The results show that a higher corporate tax level even if is offset by a high tax subsidy does not lead to a high level business enterprise expenditure on R&D as a percentage of value added in industry. Moreover this paper highlights the need for designing a tax policy that promotes innovation and gauges the loopholes of the tax system that activate profit shifting strategies.
Journal: Junior Scientific Researcher
- Issue Year: 1/2015
- Issue No: 1
- Page Range: 1-9
- Page Count: 9
- Language: English, Romanian