Skip to main content Accessibility help
×
Home
Hostname: page-component-99c86f546-md8df Total loading time: 0.172 Render date: 2021-11-27T00:45:37.907Z Has data issue: true Feature Flags: { "shouldUseShareProductTool": true, "shouldUseHypothesis": true, "isUnsiloEnabled": true, "metricsAbstractViews": false, "figures": true, "newCiteModal": false, "newCitedByModal": true, "newEcommerce": true, "newUsageEvents": true }

Chapter 2 - Different Models of Innovation and Their Relation to Law

Published online by Cambridge University Press:  26 May 2021

Get access

Summary

INTRODUCTION

  • 1. An innovation is the application of a new or significantly improved product (good or service) or process; a new marketing method; or a new organisational method in business practices, workplace organisation, or external relations. It involves the realisation that products, services, means of production, marketing strategies, delivery methods, and business structures do not take a fixed form but rather are subject to change, either incremental or radical. This chapter concerns innovation policy and what governments ought to do to secure the process by which companies inject novelty into the market. Therefore, it deals with different legal rules for commercial innovations. It does not deal with the underproduction of basic research within an economy or, for instance, the task of the state to produce basic research. Our economies have been engaging with innovation at a rapid pace, and research now revolves around the question of how the tax code can streamline and promote this evolution. Governments have adopted this goal: to ‘promote innovation, encourage the development of new technologies and increase the fund of human knowledge’. Tax law is seen as one of the main toolkits by lawyers, economists, and policy-makers. National economies are competing internationally for the price of the most innovative economy, and our tax codes have been subject to fierce innovation too. In a political environment where governments are pushed to ‘create growth’, favourable R&D treatment has now turned into the panacea of innovation policy. Favourable R&D treatment, such as the allocations of R&D to foreign income, the R&D tax credit, the R&D favourable deduction scheme, and patent boxes, are seldom-contested tax expenditures that are the biggest tax expenditures for many big economies.

  • 2. Western legal systems follow the OECD and the World Bank and welcome tax incentives for research and development (R&D) as a sound innovation policy. In the European Union, nearly all Member States adopted tax subsidies for R&D expenditures. Belgium recently enforced and reformed its incentives for innovation, hereby following the Base Erosion and Profit Shifting initiative from the OESO.

Type
Chapter
Information
Publisher: Intersentia
Print publication year: 2021

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Send book to Kindle

To send this book to your Kindle, first ensure no-reply@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about sending to your Kindle.

Note you can select to send to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be sent to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Send book to Dropbox

To send content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about sending content to Dropbox.

Available formats
×

Send book to Google Drive

To send content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about sending content to Google Drive.

Available formats
×