This report was prepared in the context of the three-year research project on European Innovation Policies for the Digital Shift1 (EURIPIDIS). This project was jointly launched in 2013 by JRC-IPTS and DG CONNECT of the European Commission. It aims to improve understanding of innovation in the...

Tax competition has long been studied using panel models. According to this approach, each country's tax rate is assumed to depend on a weighted average of the tax rates applied in the rest of the world, where weights are exogenous. As a consequence, the estimated reaction functions of countries...