Innovation and Public Policy.

As advanced economies worldwide experience slowing productivity growth, the time is ripe for new research on innovation policy. Their basic idea is to assess changes in the GDP (gross domestic product) path resulting from total research and development (R&D) investment, which implicitly aggregates across the many spillover margins of innovation. In Chapter 5, Hall focuses on the main "direct" innovation tax measures: R&D tax credits (which reduce R&D costs) and intellectual property (IP) boxes (which reduce taxes on profits earned from eligible IP). [Extracted from the article]