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Clayton Christensen, Harvard Business School prof, has promoted a tax structure that has much lower taxes on investments that last multiple years (say 5), and h
by chrispeel 9y ago
Clayton Christensen, Harvard Business School prof, has promoted a tax structure that has much lower taxes on investments that last multiple years (say 5), and higher taxes on short-term investment (less than a year) as a way to incentivize long-term R&D. I like this as a mechanism to change the way MBAs think about profit and investment. I.e., as something that I'd love to see more at Harvard get behind.
- IIIIIIIIIIII 9y agoI'm not sure that would help much. I think the risks and uncertainties of long-term R&D increase much faster than any tax incentive can compensate for. My favorite story is the (real) history of Silicon Valley. I once thought that was a proof for what private enterprise can accomplish. Turns out that SV is actually based on the unrestrained spending on R&D (of borrowed money, of course) by government during WWII. [0] Private enterprise wants a level of certainty, long-term or not. Tax incentives don't reduce the uncertainty. I doubt that money is the major constraint. Look at some major corporations basically "swimming" in money, and they also should be able to borrow easily (and cheaply) at this time. [0] https://www.youtube.com/watch?v=ZTC_RxWN_xo https://www.youtube.com/watch?v=ZTC_RxWN_xo