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Impact on Society
23 June 2010
The 'patent box' proposal
Impact on Society
At the end of 2009 the UK government announced plans for a Patent Box to reduce the rate of corporation tax on income derived from patents from 28% to 10% at an estimated cost of £1.3 billion. The stated aim was to strengthen ‘the incentives to invest in innovative industries and ensure the UK remains an attractive location for innovation’. Drawing on our past academic research on firm location decisions, and using longitudinal data we had developed with ESRC funding, we were able to provide policy makers and the media with an immediate analysis of the likely impact of the proposed reform. We now plan to extend our research to provide a more complete evaluation of the proposed reforms.