We present evidence of a causal impact of research and development (R&D) tax incentives on innovation. We exploit a change in the asset-based size thresholds for eligibility for R&D tax subsidies and implement a Regression Discontinuity Design using administrative tax data on the population of...

In this paper we estimate a dynamically recursive model of the relationship between innovations, patents and cash flow. Our results suggest that: 1) lagged patents are significant predictors of current innovation, but lagged innovations do not affect the conditional expectation of current...