Top publication by Maximilian Todtenhaupt

6 September 2021 13:16

Top publication by Maximilian Todtenhaupt

The article "Cross-border effects of R&D tax incentives" has been published in Research Policy.

Research Policy is included on the NHH Bonus list and on the Financial Times Research Rank List, and it is also on level 4* in the ABS Academic Journal Guide.

Knoll, Bodo, Nadine Riedel, Thomas Schwab, Maximilian Todtenhaupt and Johannes Voget: Cross-border effects of R&D tax incentives, Research Policy, 2021, 50(9), 104326, Online 28.07.2021.


Existing evidence shows that R&D tax incentives boost countries’ private sector R&D. Given the importance of multinational enterprises (MNEs) for private sector innovation, it is unclear, however, whether firms engage in genuinely new R&D or whether R&D is reallocated across borders.

Drawing on data on unconsolidated R&D activity of MNEs in Europe, we provide evidence that responses are dominated by cross-border relocations: More generous tax incentives in one country increase MNEs’ R&D investments in affiliates located there, while lowering R&D investments in affiliates of the same MNE group located in other countries. Globally, firms hardly raise their R&D activities when tax incentives become more generous.