Write a detailed literature review on the topic "higher income tax rates reduce innovation - Taxation and Innovation". The aim of this study is to find out if a similar relationship between innovation...

Running Head: Higher-income tax rates reduce innovation - Taxation and Innovation
Higher-income tax rates reduce innovation - Taxation and Innovation
Higher-income tax rates reduce innovation - Taxation and Innovation
Table of Contents
Introduction    2
Literature Review    2
Conclusion    7
References    8
Introduction
    There are many reasons as to why people should be caring about innovation. Innovation makes sure to propel technological success (Akcigit et al., 2018). This is also one of the main drivers of growth of the economy for the long-run. It has already been researched to reveal that the United States had seen the most innovations and really fast growth from 1900-2000. It has many other roles to play apart from just growth in itself since it can also facilitate social mobility especially if being done by the new entrants. This has a crucial effect on people and their well-being.
Literature Review
    As per Jones (2019), it is not always that the policies of income taxes are against the processes of innovation in America and Africa. It is sometimes eliciting a mixed effect on the faculties of innovation as in it can go both ways so it does not always have to be detrimental to innovation. Innovation is under the purview of a firm or an individual innovator. These are the main agents for innovating and innovation and such inventors may be hired by companies to work in their research and development department or they may choose to be self-employed. The main characteristics of the inventor and firms which may have to be considered by policies that are represented show that they can have a varying degree of productivity. This may be the efficiencies through which they can be converting research and development and the inputs of research into innovative things. The composition of productivity of the firms along with the inventors shall be affecting the many kinds of policy and its various impacts and can also be endogenously be impacted by them. For a company, it is just not about the firm and its quality overall that matters the most but it is also specifically affected by the composition and quality of the teams of research.
    According to Hedlund (2019), the firms may be at different stages in regards to their own life-cycle that is they may be an early start-up or a mature and large firm. It is often the case that inventors can be starting out as very young. They can be inexperienced and maybe getting the chance to be improving their level of skills by experiences and acts of learning over the course of time. The producing of quantity and quality of innovation in requiring specific inputs can be mostly tangible that is material resources, equipment and laboratory spaces. They can also be of an intangible nature that is the requirement may be in the skill and effort sections with the workers and their know-how along with management and its efficiency. The firms and innovators have many a possible margin on which they are supposed to be optimising which should be in principle and also be responsive to many of the different policies. The inventors first can be making a choice that is occupational as to if they should be inventors at all or not. They will also have to be deciding if they will want to be self-employed or if they can be employed by a company.
    According to the literary underpinnings of Bell et al. (2019), the inventors may also be choosing where they will have to be located geographically and if they should be working for a specific firm or not. They are also in charge of choosing their intangible as well as tangible inputs. Once the innovative has been created the innovators will have to be choosing if they should be selling it to the companies or if they shall be incorporating to build a business going around the same novel invention. Innovation along with the associated flowing of income can be thus moving from the corporate to the personal sector. The firms will have to be choosing if they want to enter a particular market or not, if they would want to be remaining in operation, or if they would like to exit. The companies will also have to be selecting the geographic locations out of which they will want to be operating which may in places that are multifarious and differing for that of production or the facilities of research. The firms get to be deciding on the kind of research and development that is R&D and innovation along with their research employment and inputs.
    As per the opinions of Hosseini (2018), the firms can also be chosen as to if they will be directing the operations of their research towards anything applied or basic. Basically, innovation is described as the system-wise studying of gaining more of a comprehensive knowledge or understanding regards to any kind of subject being studies without having any specific applications within a person’s mind. Application of research or applied research is the system-wise studying for the gaining of knowledge or any kind of understanding for the meeting of any...