Does regulation affect the pace and nature of innovation and if so, by how much? We build a tractable and quantifiable … sharp reduction in the firm's innovation response to exogenous demand shocks for firms just below the regulatory threshold …. We then quantitatively fit the parameters of the model to the data, finding that innovation at the macro level is about 5 …

The acceleration of start-up activity is often cited as a rationale for the R&D tax credit, a key innovation policy …&D tax credit to increased R&D expenditures and innovation, prior work has not provided causal evidence that this policy …