McShane, William; Sevilir, Merih - Leibniz-Institut für Wirtschaftsforschung Halle - 2023
We propose a novel mechanism through which established firms contribute to the startup ecosystem: the allocation of R&D … tax credits to startups via the M&A channel. We show that when established firms become eligible for R&D tax credits, they … increase their R&D and M&A activity. In particular, they acquire more venture capital (VC)-backed startups, but not non …