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Taxes, R&D Expenditures, and Open Innovation: Analyzing OECD Countries

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Department of Political Economy and Public Finance, Economics and Business Statistics and Economic Policy, University of Castilla La Mancha, 13071 Ciudad Real, Spain
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School of Economics and Finance, Xi’an Jiaotong University, Xi’an 215123, China
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School of Economics and Management, Southeast University, Nanjing 211189, China
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Authors to whom correspondence should be addressed.
J. Open Innov. Technol. Mark. Complex. 2021, 7(1), 36; https://doi.org/10.3390/joitmc7010036
Received: 23 November 2020 / Revised: 9 January 2021 / Accepted: 11 January 2021 / Published: 17 January 2021
This paper aims to measure the effect of tax contributions in promoting innovation while highlighting the role of corporate taxes in governance quality in nations within and outside the Organization for Economic Co-operation and Development (OECD). The study applied the generalized method of moments (GMM) framework and found that good governance invariably increases the Innovation Index. Moreover, research and development expenditures revealed a positive association with the Innovation Index. However, corporate taxes and taxes paid by the business sector harm the Innovation Index. Following the investigation, we recommended that policymakers should plan well to balance the costs of innovation and tax incentives, to avoid stimulating unproductive innovations or affecting operating budgets. View Full-Text
Keywords: research and development expenditure; innovation; taxes; OECD countries; corporate tax research and development expenditure; innovation; taxes; OECD countries; corporate tax
MDPI and ACS Style

Balsalobre-Lorente, D.; Zeraibi, A.; Shehzad, K.; Cantos-Cantos, J.M. Taxes, R&D Expenditures, and Open Innovation: Analyzing OECD Countries. J. Open Innov. Technol. Mark. Complex. 2021, 7, 36. https://doi.org/10.3390/joitmc7010036

AMA Style

Balsalobre-Lorente D, Zeraibi A, Shehzad K, Cantos-Cantos JM. Taxes, R&D Expenditures, and Open Innovation: Analyzing OECD Countries. Journal of Open Innovation: Technology, Market, and Complexity. 2021; 7(1):36. https://doi.org/10.3390/joitmc7010036

Chicago/Turabian Style

Balsalobre-Lorente, Daniel, Ayoub Zeraibi, Khurram Shehzad, and José M. Cantos-Cantos. 2021. "Taxes, R&D Expenditures, and Open Innovation: Analyzing OECD Countries" Journal of Open Innovation: Technology, Market, and Complexity 7, no. 1: 36. https://doi.org/10.3390/joitmc7010036

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