Persistent Link:
http://hdl.handle.net/10150/614244
Title:
Marginal Tax Rates and Innovative Activity in the Biotech Sector
Author:
Diaz, Pedro; Skrepnek, Grant
Affiliation:
College of Pharmacy, The University of Arizona
Issue Date:
2013
Rights:
Copyright © is held by the author.
Collection Information:
This item is part of the Pharmacy Student Research Projects collection, made available by the College of Pharmacy and the University Libraries at the University of Arizona. For more information about items in this collection, please contact Jennifer Martin, Associate Librarian and Clinical Instructor, Pharmacy Practice and Science, jenmartin@email.arizona.edu.
Publisher:
The University of Arizona.
Abstract:
Specific Aims: To assess the association between marginal tax rates (MTR) and innovative output of biotechnology firms. The MTR plays an important role in firms’ financing choices. Assessment of a firm’s tax status may reveal how firms decide on investment policies that affect R&D. Methods: A retrospective database analysis was used. Subjects included were firms within the biotechnology sector with the Standard Industrial Classification code of 2836 from 1980 - 2011. MTR Data was obtained from the S&P Compustat database, and Patent data was obtained from the U.S. Patent and Trademark Office. Changes in MTR’s on outcomes of patents were analyzed by performing an inferential analysis. Generalized estimating equations (GEE) were used, specifically utilizing a GEE regression with a negative binomial distributional family with log link, independent correlation structure and robust standard error variance calculation. Patents were regressed by the lagged change in MTR, after interest deductions. Main Results: The lag years 2 and 5 of the MTR change were statistically significant, (p = 0.031) and (p = 0.026) for each model respectively. Every one unit increase in the change of the MTRs was associated with large and significant drops in patents 78.8% (IRR = 0.212), 90.7% (IRR = 0.093), 92.7% (IRR = 0.073) at year 2 lag and 84.8% (IRR = 0.152), 92.6% (IRR = 0.074) at year 5 lag. Conclusion: An increase in the change of the MTR results in significant drops in patenting activity.
Description:
Class of 2013 Abstract
Keywords:
marginal tax rates (MTR); Activity; Biotech Sector; Generalized estimating equations (GEE)
Advisor:
Skrepnek, Grant

Full metadata record

DC FieldValue Language
dc.contributor.advisorSkrepnek, Granten
dc.contributor.authorDiaz, Pedroen
dc.contributor.authorSkrepnek, Granten
dc.date.accessioned2016-06-22T21:22:03Z-
dc.date.available2016-06-22T21:22:03Z-
dc.date.issued2013-
dc.identifier.urihttp://hdl.handle.net/10150/614244-
dc.descriptionClass of 2013 Abstracten
dc.description.abstractSpecific Aims: To assess the association between marginal tax rates (MTR) and innovative output of biotechnology firms. The MTR plays an important role in firms’ financing choices. Assessment of a firm’s tax status may reveal how firms decide on investment policies that affect R&D. Methods: A retrospective database analysis was used. Subjects included were firms within the biotechnology sector with the Standard Industrial Classification code of 2836 from 1980 - 2011. MTR Data was obtained from the S&P Compustat database, and Patent data was obtained from the U.S. Patent and Trademark Office. Changes in MTR’s on outcomes of patents were analyzed by performing an inferential analysis. Generalized estimating equations (GEE) were used, specifically utilizing a GEE regression with a negative binomial distributional family with log link, independent correlation structure and robust standard error variance calculation. Patents were regressed by the lagged change in MTR, after interest deductions. Main Results: The lag years 2 and 5 of the MTR change were statistically significant, (p = 0.031) and (p = 0.026) for each model respectively. Every one unit increase in the change of the MTRs was associated with large and significant drops in patents 78.8% (IRR = 0.212), 90.7% (IRR = 0.093), 92.7% (IRR = 0.073) at year 2 lag and 84.8% (IRR = 0.152), 92.6% (IRR = 0.074) at year 5 lag. Conclusion: An increase in the change of the MTR results in significant drops in patenting activity.en
dc.language.isoen_USen
dc.publisherThe University of Arizona.en
dc.rightsCopyright © is held by the author.en
dc.subjectmarginal tax rates (MTR)en
dc.subjectActivityen
dc.subjectBiotech Sectoren
dc.subjectGeneralized estimating equations (GEE)en
dc.titleMarginal Tax Rates and Innovative Activity in the Biotech Sectoren_US
dc.typetexten
dc.typeElectronic Reporten
dc.contributor.departmentCollege of Pharmacy, The University of Arizonaen
dc.description.collectioninformationThis item is part of the Pharmacy Student Research Projects collection, made available by the College of Pharmacy and the University Libraries at the University of Arizona. For more information about items in this collection, please contact Jennifer Martin, Associate Librarian and Clinical Instructor, Pharmacy Practice and Science, jenmartin@email.arizona.edu.en
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