&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 …

that patents reach a high right before the IPO followed by a natural decline post-IPO. Additionally, VC-backing leads to … within the initial years of an IPO. Finding this effect to be more pronounced at firms with higher innovation activity pre-IPO … higher growth in sales and productivity after going public pointing to a shift in VC focus post-IPO. We address endogeneity …