The Why Podcast: Why lowering corporate taxes can boost productivity

In the latest episode of The Why Podcast, Katie Pisa met with Paolo Surico, Professor of Economics at London Business School, and Joseba Martinez, Assistant Professor of Economics at London Business School to discuss their research titled “Corporate taxes, innovation and productivity”. Their findings offer valuable insights into how tax policies can be leveraged to promote innovation and drive economic growth. The two spent two and a half years working on this research after evidence showed them the remarkable impact that government corporate tax cuts (even temporary) can have on productivity. The overall message of their research is that governments need to better design the corporate tax system such that the corporations that pay the most tax are the least innovative. Some key takeaways from this chat include: Tax is necessary but how it can be tweaked to encourage innovators How R&D reduces tax and the impact it has on productivity How governments need to consider which companies should receive tax cuts Key historical moments when innovation was boosted How the UK, where the new government says it aims to foster growth, might fare if they consider such corporate tax cuts What a second Trump presidency looks in regards to taxes The impact of personal tax cuts doesn’t always have the same impact as corporate tax cuts You can read their full paper here: https://www.corptaxinnovation.pdf For more thought leadership and business insights from London Business School faculty and alumni, visit Think at London Business School Sign up here to receive a curated selection of articles, podcasts and films direct to your inbox twice a month. Follow us on social media: X Linkedin Facebook