. Using a differences-in-differences methodology, we document that large corporate income tax cuts boost corporate innovation …. We find a similar but opposite effect for tax increases. Most of the change in innovation occurs two or more years after … stronger impact on innovation for firms with weaker governance, greater financial constraints, fewer tangible assets, smaller …

innovation. A variety of tests, including those based on policy discontinuity at contiguous counties straddling borders of … across the innovation spectrum: taxes affect not only patenting and R\&D investment but also new product introductions, which …