citation_author
Białek-Jaworska, Anna
citation_volume
31
citation_author
Teterycz, Agnieszka
citation_author
Sicher, Ricardo
citation_author
Woźniak, Michał
citation_publication_date
9/2023
citation_title
IP box effects in the gaming industry
citation_pdf_url
https://repozytorium.kozminski.edu.pl/pl/system/files/Bialek_0.pdf
citation_issue
3
citation_journal_title
Central European Management Journal
citation_issn
2658-0845
citation_firstpage
292
citation_lastpage
325
dcterms.title
IP box effects in the gaming industry
dcterms.creator
Białek-Jaworska
dcterms.subject
IP box, innovation box, effective tax rate, gaming industry
dcterms.description
Purpose – This paper aims to verify how the intellectual property (IP) box affects firms’ effective tax rate, growth and innovation activity outcomes related to intellectual property rights. Design/methodology/approach – Implementing the innovation box regimes into the tax system intends to encourage firms to engage in more innovative activities. In UK, Italy and Poland, the IP box tax relief was introduced in 2013, 2015 and 2019, respectively. In return, companies may reduce their tax rate to increase their investment and innovativeness. With a panel model approach – system GMM and DiD with multiple time periods – it analyses data from the Orbis database for 2011–2019 of 673 firms from the gaming industry in 11 countries and hand-collected data on intellectual property rights protection. The authors study public and private companies from the gaming sector in leading European markets and all three countries that protect intellectual property rights of software (Japan, South Korea, the USA). Findings – Recent reforms enable gaming companies to use preferential tax treatment for IP-related income and significantly impact a firm’s revenue growth. Practical implications – Nevertheless, European gaming firms require time to leap the gap to the growth and innovativeness of countries that protect software. Originality/value – The authors show that the IP box stimulates gaming firms to protect IP via wordmarks, figurative marks, trademarks and software patents that bring effects in five years. Despite the critics against IP box, the authors prove its lagged efficiency, especially in profitable and larger firms.
dcterms.contributor
Białek-Jaworska
dcterms.date
9/2023
dcterms.type
Text
dcterms.format
text/html
dcterms.identifier
https://repozytorium.kozminski.edu.pl/pl/pub/7279
dcterms.abstract
Purpose – This paper aims to verify how the intellectual property (IP) box affects firms’ effective tax rate, growth and innovation activity outcomes related to intellectual property rights. Design/methodology/approach – Implementing the innovation box regimes into the tax system intends to encourage firms to engage in more innovative activities. In UK, Italy and Poland, the IP box tax relief was introduced in 2013, 2015 and 2019, respectively. In return, companies may reduce their tax rate to increase their investment and innovativeness. With a panel model approach – system GMM and DiD with multiple time periods – it analyses data from the Orbis database for 2011–2019 of 673 firms from the gaming industry in 11 countries and hand-collected data on intellectual property rights protection. The authors study public and private companies from the gaming sector in leading European markets and all three countries that protect intellectual property rights of software (Japan, South Korea, the USA). Findings – Recent reforms enable gaming companies to use preferential tax treatment for IP-related income and significantly impact a firm’s revenue growth. Practical implications – Nevertheless, European gaming firms require time to leap the gap to the growth and innovativeness of countries that protect software. Originality/value – The authors show that the IP box stimulates gaming firms to protect IP via wordmarks, figurative marks, trademarks and software patents that bring effects in five years. Despite the critics against IP box, the authors prove its lagged efficiency, especially in profitable and larger firms.
dcterms.language
en
dcterms.modified
2023-12-14T16:45+01:00