| Autor: |
Shubhashis Gangopadhyay, Swarnodeep Homroy |
| Přispěvatelé: |
Research programme EEF |
| Jazyk: |
angličtina |
| Rok vydání: |
2023 |
| Předmět: |
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| Zdroj: |
Research Policy, 51(1):104654. ELSEVIER SCIENCE BV |
| ISSN: |
0048-7333 |
| Popis: |
We examine the effect of social policies on corporate innovation using India's mandatory Corporate Social Responsibility (CSR) regulation. This regulation mandates firms with pre-tax profits above a certain threshold tospend 2 % of the profits on CSR. We demonstrate a significant bunching of companies just below the profitthreshold post-regulation compared to the pre-regulation period. Firms close to the profit threshold manipulatetheir earnings to avoid compliance by increasing their R&D expenses. We show that, on average, firms thatincrease R&D expenses to avoid the regulation apply for one more patent and announce two new products. Theincrease in R&D expenses and patenting is concentrated in firms with a prior history of innovation. Our resultssuggest that social policies can generate indirect incentives for innovation. |
| Databáze: |
OpenAIRE |
| Externí odkaz: |
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