Do subsidies have positive impacts on R&D and innovation activities at the firm level?
AbstractIn this paper we analyze whether and how "research" and "development" subsidies influence private R&D activity. Our empirical results show that "research" subsidies stimulate R&D spending within firms while "development" subsidies substitute such spending. At the theoretical level we find empirical support for the market failure argument that private R&D expenditure is best stimulated in areas where the gap between the social and the private rate of return to R&D is high. A policy implication is that technology programs should support research projects in the private sector in order to stimulate to more R&D.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Elsevier in its journal Structural Change and Economic Dynamics.
Volume (Year): 20 (2009)
Issue (Month): 4 (December)
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/525148
Research and development (R&D) subsidies Innovation Norway;
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Filipe Silva & Carlos Carreira, 2012.
"Do financial constraints threat the innovation process? Evidence from Portuguese firms,"
Economics of Innovation and New Technology,
Taylor & Francis Journals, vol. 21(8), pages 701-736, November.
- 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.
- Carboni, Oliviero A., 2013. "Heterogeneity in R&D collaboration: An empirical investigation," Structural Change and Economic Dynamics, Elsevier, vol. 25(C), pages 48-59.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If references are entirely missing, you can add them using this form.