Tax Policy to Stimulate Innovation and Entrepreneurship

Taxation, undeniably one of the most influential tools at a policymaker’s disposal, plays a pivotal role in stimulating innovation and entrepreneurship. As such, we dedicate here a separate chapter to tax policy and the effects it can have. The tax structure influences not only the overall volume of innovative entrepreneurship, but also the channels through which it wields its impact. Tax rules and tax rates determine the extent to which net return differs from gross return for potential entrepreneurs and other actors in the collaborative innovation ecosystem.