Previous work suggests that research and development (R&D) tax credits increase R&D expenditure. We exploit the staggered adoption of state-level R&D tax credits in the United States to examine their effect on innovation itself. In particular, we consider ten commonly-studied patent...

This paper documents that firms increasingly finance innovation with their stock of innovation, measured as patents. We refer to this behavior as financing innovation with innovation. Drawing on patent collateral data from the US and China, we first show that (1) in both countries the number and...

Decentralized finance is financial services offered on a public blockchain over the internet. This paper reviews the decentralized finance (DeFi) research and development around the world. The findings of the literature review are that decentralized finance offers many benefits such as...

We study the equilibrium effects of innovation subsidies that reduce firms’ innovation costs. We consider a monopolistic competition model with firm heterogeneity in innovation capabilities and an industry-level constraint of a production factor. The subsidy would change product market...

With quantity-based innovation targets and subsidy programs launched since the mid-2000s, Chinese patents have seen a sharp increase in number, accounting for 46% of the world’s total patent applications in 2020; however, their overall quality has been steadily declining over time. This paper...

This paper examines the impact of informational frictions when the entrepreneur anticipates having little or no bargaining power in negotiating with the financier and can select ex ante the innovation/venture he wants to develop. In this environment the entrepreneur faces a tradeoff between...

This paper examines the impact of informational frictions when the entrepreneur anticipates having little or no bargaining power in negotiating with the financier and can select ex ante the innovation/venture he wants to develop. In this environment the entrepreneur faces a tradeoff between...

This paper studies how federal funding affects the innovation outputs of university researchers. We link person-level research grants from 22 universities to patent, publication, and career outcomes from the U.S. Census Bureau. We focus on the effects of large, idiosyncratic, and temporary cuts...

Subsidizing technology fosters product innovation that might lead to a quicker technology adoption. This innovation effect could justify subsidy expenses beyond the directly related social value of the subsidized good during its lifetime. This paper proposes a method to calculate the underlying...