I don't know about 'leads to', I mean, innovation quite clearly precedes taxation, otherwise it would be rather difficult to invent it, but taxation definitely directly funds far more innovation than the private sector does, at least if we are talking about fundamental research.
I was boldly going with a universal quantifier ("always") which might be a bit of an exaggeration, but I wasvery careful of getting the direction right. "All taxation leads to (some form of) innovation" is a very different statement from "all innovation comes from taxation".
