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Two for the price of one?: Additionality effects of R&D subsidies: A comparison between Flanders and Germany

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  • Aerts, Kris
  • Schmidt, Tobias

Abstract

We empirically test whether public R&D subsidies crowd out private R&D investment in Flanders and Germany, using firm level data from the Flemish and German part of the Community Innovation Surveys (CIS III and IV). Both the non-parametric matching estimator and the conditional difference-in-differences estimator with repeated cross-sections (CDiDRCS) clearly indicate that the crowding-out hypothesis can be rejected: funded firms are significantly more R&D active than non-funded firms. In the domain of additionality effects of R&D subsidies, this paper is the first to apply the CDiDRCS method.

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Bibliographic Info

Article provided by Elsevier in its journal Research Policy.

Volume (Year): 37 (2008)
Issue (Month): 5 (June)
Pages: 806-822

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Handle: RePEc:eee:respol:v:37:y:2008:i:5:p:806-822

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References

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Citations

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Cited by:
  1. Jacques Mairesse & Pierre Mohnen, 2010. "Using Innovation Surveys for Econometric Analysis," CIRANO Working Papers 2010s-15, CIRANO.
  2. Victor Lavric, 2012. "The Dynamics Of R&D Activities In Romania Within The European Context," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 6(1), pages 648-654, November.
  3. Kleer, Robin, 2010. "Government R&D subsidies as a signal for private investors," Research Policy, Elsevier, vol. 39(10), pages 1361-1374, December.
  4. Filipe Silva & Carlos Carreira, 2011. "Do financial constraints threat the innovation process? Evidence from Portuguese firms," GEMF Working Papers 2011-10, GEMF - Faculdade de Economia, Universidade de Coimbra, revised Oct 2011.
  5. Marco Corsino & Roberto Gabriele & Anna Giunta, 2012. "R&D Incentives: The Effectiveness Of A Place-Based Policy," Departmental Working Papers of Economics - University 'Roma Tre' 0169, Department of Economics - University Roma Tre.
  6. Victor LAVRIC, 2013. "The Dynamics Of R&D Human Resources In Romania Within The European Context," Proceedings of the INTERNATIONAL MANAGEMENT CONFERENCE, Faculty of Management, Academy of Economic Studies, Bucharest, Romania, vol. 7(1), pages 259-267, November.
  7. Ensthaler, Ludwig & Giebe, Thomas, 2014. "A dynamic auction for multi-object procurement under a hard budget constraint," Research Policy, Elsevier, vol. 43(1), pages 179-189.
  8. Syoum Negassi & Jean-Francois Sattin, 2014. "Evaluation of Public R&D Policy: A Meta-Regression Analysis," Working Papers 14-09, University of Delaware, Department of Economics.
  9. Hottenrott, Hanna & Lopes-Bento, Cindy, 2013. "(International) R&D collaboration and SMEs: The effectiveness of targeted public R&D support schemes," DICE Discussion Papers 121, Heinrich‐Heine‐Universität Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
  10. Wojciech Grabowski & Krzysztof Szczygielski & M. Teoman Pamukçu & Sinan Tandogan, 2013. "Does Government Support for Private Innovation Matter? Firm Level Evidence from Turkey and Poland," CASE Network E-briefs 3, CASE-Center for Social and Economic Research.
  11. POPA Ion & LAVRIC Victor, 2013. "Managerial Methods Stimulating New Ideas Or Creativity In Romania Wihin The European Context," Revista Economica, Lucian Blaga University of Sibiu, Faculty of Economic Sciences, vol. 65(6), pages 128-138.
  12. Bettina Becker, 2013. "The Determinants of R&D Investment: A Survey of the Empirical Research," Discussion Paper Series 2013_09, Department of Economics, Loughborough University, revised Sep 2013.
  13. Sánchez-Sellero, Pedro & Rosell-Martínez, Jorge & García-Vázquez, José Manuel, 2014. "Absorptive capacity from foreign direct investment in Spanish manufacturing firms," International Business Review, Elsevier, vol. 23(2), pages 429-439.
  14. Czarnitzki, Dirk & Lopes-Bento, Cindy, 2013. "Value for money? New microeconometric evidence on public R&D grants in Flanders," Research Policy, Elsevier, vol. 42(1), pages 76-89.
  15. Hud, Martin & Hussinger, Katrin, 2014. "The impact of R&D subsidies during the crisis," ZEW Discussion Papers 14-024, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  16. Hottenrott, Hanna & Lopes-Bento, Cindy, 2014. "(International) R&D collaboration and SMEs: The effectiveness of targeted public R&D support schemes," Research Policy, Elsevier, vol. 43(6), pages 1055-1066.
  17. Popa Ion & Lavric Victor, 2013. "Highly Important Objectives For Innovation In Romania Within The European Context," Annals of Faculty of Economics, University of Oradea, Faculty of Economics, vol. 1(1), pages 1588-1594, July.

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