Innovation & IP Asset Consulting
Convergence for divergent trends

AN AMERICAN DILEMMA: LESS INVESTMENTS IN SCIENCE AND RESEARCH

The American market economy and its tax system do no favor their companies with current high rates and absurd exemptions. Corporations and their managers act only according to whether the costs are higher than the benefits. In this case, such high tax rates can significantly distort decisions. This results in a huge dilemma, since no investments in science and research are being made, but rather in the expansion of finance departments. In addition to the massive tax losses, all this has much more serious consequences: jobs will be cut, medicine will stop being developed and at last, competition remains stalled.

A prominent example of this is the American pharmaceutical company Pfitzer. The patents expire and the research budget is drastically reduced in order to maximize profit. This, of course, will be sent abroad due to significantly lower tax rates.