Department Profiles
Research Profiles of the IWH Departments All doctoral students are allocated to one of the four research departments (Financial Markets – Laws, Regulations and Factor Markets –…
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Mitgliedschaft
Mitgliedschaft Fünf gute Gründe für eine Mitgliedschaft im Verein des Leibniz-Instituts für Wirtschaftsforschung Halle (IWH) Das Leibniz-Institut für Wirtschaftsforschung Halle…
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Projekte
Unsere Projekte 07.2022 ‐ 12.2026 Evaluierung des InvKG und des Bundesprogrammes STARK Bundesministerium für Wirtschaft und Klimaschutz (BMWK) Im Auftrag des Bundesministeriums…
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R&D Tax Credits and the Acquisition of Startups
William McShane, Merih Sevilir
IWH Discussion Papers,
Nr. 15,
2023
Abstract
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-VC-backed firms. Moreover, the impact of R&D tax credits on firms’ R&D is increasing with their acquisition of VC-backed startups. The results suggest that established firms respond to R&D tax credits by acquiring startups rather than solely focusing on increasing their R&D intensity in-house. We also highlight evidence that startups do not appear to benefit from R&D tax credits directly, perhaps because they typically lack the taxable income necessary to directly benefit from the tax credits. In this context, established firms can play an intermediary role by acquiring startups and reallocating R&D tax credits, effectively relaxing the financial constraints faced by startups.
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People
People Job Market Candidates Doctoral Students PhD Representatives Alumni Supervisors Lecturers Coordinators Job Market Candidates Tommaso Bighelli Job market paper: "The…
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Lecturers
Lecturers at CGDE Institutions Jordan Adamson Assistant Professor at Institute for Empirical Economic Research, Leipzig University. Website Course: Econometrics (winter term…
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Department Profiles
Research Profiles of the IWH Departments All doctoral students are allocated to one of the four research departments (Financial Markets – Laws, Regulations and Factor Markets –…
Zur Seite
Technological Innovation and the Bank Lending Channel of Monetary Policy Transmission
Iftekhar Hasan, Xiang Li, Tuomas Takalo
IWH Discussion Papers,
Nr. 14,
2021
Abstract
This paper studies whether and how banks’ technological innovations affect the bank lending channel of monetary policy transmission. We first provide a theoretical model in which banks’ technological innovation relaxes firms’ earning-based borrowing constraints and thereby enlarges the response of banks’ lending to monetary policy changes. To test the empirical implications, we construct a patent-based measurement of bank-level technological innovation, which can specify the nature of technology and tell whether it is related to the bank’s lending business. We find that lending-related innovations significantly strengthen the transmission of the bank lending channel.
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14.12.2020 • 25/2020
Deutsche Lebensversicherer investieren nicht ausreichend in Start-ups
Die deutschen Lebensversicherer legen ihr Kapital bislang zu wenig in Aktien an und hemmen so die wirtschaftliche Dynamik. Eine Studie des Leibniz-Instituts für Wirtschaftsforschung Halle (IWH) legt nahe, dass der Gründerszene Risikokapital fehlt, um erfolgreiche Start-ups zu finanzieren. Grund dafür ist das Anlageverhalten potenzieller Investoren. IWH-Präsident Reint Gropp fordert Reformen, die die Finanzierung innovativer Ideen fördern.
Reint E. Gropp
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On the International Dissemination of Technology News Shocks
João Carlos Claudio, Gregor von Schweinitz
IWH Discussion Papers,
Nr. 25,
2020
Abstract
This paper investigates the propagation of technology news shocks within and across industrialised economies. We construct quarterly utilisation-adjusted total factor productivity (TFP) for thirteen OECD countries. Based on country-specific structural vector autoregressions (VARs), we document that (i) the identified technology news shocks induce a quite homogeneous response pattern of key macroeconomic variables in each country; and (ii) the identified technology news shock processes display a significant degree of correlation across several countries. Contrary to conventional wisdom, we find that the US are only one of many different sources of technological innovations diffusing across advanced economies. Technology news propagate through the endogenous reaction of monetary policy and via trade-related variables. That is, our results imply that financial markets and trade are key channels for the dissemination of technology.
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