Anniversary 2017
Anniversary 2017 25 years IWH. Highlights and turning points. A quarter of a century ago, our employees started to work for IWH. What has happened from then until now? Content 25…
See page
Seminar
Seminar In the Doctoral Research Seminar (DRS) series, students have the opportunity to regularly present and advocate their research to a broader audience and to obtain advices…
See page
IWH Bankruptcy Research
IWH Bankruptcy Research The Bankruptcy Research Unit of the Halle Institute for Economic Research (IWH) presents the Institute’s research on the topics of corporate bankruptcy,…
See page
Courses
Courses Courses are organised in coordination with partner institutions within the Central-German Doctoral Program Economics (CGDE) network. IWH organises First-Year Courses in…
See page
Joint Economic Forecast
Joint Economic Forecast The joint economic forecast is an instrument for evaluating the overall economic situation and development in Germany, the euro area and the rest of the…
See page
Homepage
IWH Summer Forecast: German economy still on the defensive – but first signs of an end to the downturn In the first half of 2024, signs of an economic recovery are increasing.…
See page
R&D Tax Credits and the Acquisition of Startups
William McShane, Merih Sevilir
IWH Discussion Papers,
No. 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.
Read article
Gender Equality & Anti-Discrimination
Equal Opportunities at IWH IWH commits to actively promoting equal opportunities for men and women, going beyond already existing guidelines. In 2013, 2016, 2019, and again in…
See page
Overview, Contact and Opening Hours
Library The IWH scientific library is specialized in economics, corresponding to the Institute's research profile. The library stock contains especially literature on the…
See page
Jobs at IWH
Vacancies at IWH The Halle Institute for Economic Research (IWH) – Member of the Leibniz Association was founded in 1992. IWH’s tasks are economic research and science-based…
See page