Professor finds megadeal tax subsidies spur local innovation

CSULB associate professor of accountancy, Yoojin Lee, co-authored a study appearing on Forbes.com that found that “megadeal” tax subsidies can spur innovation among nearby businesses. Examining 115 deals, researchers found high-tech investments increased local patenting through knowledge spillovers and worker mobility. Lee said the result surprised the team, which expected large, subsidized firms to crowd out innovation.