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The Effects of R&D Subsidies and Publicly Performed R&D on Business R&D: A Survey

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  • Thomas H. W. Ziesemer

    (Maastricht University and UNU-MERIT)

Abstract

This literature review shows that a majority of studies find complementarity between R&D subsidies and private R&D expenditures. A minority finds incomplete crowding out. Full crowding out is found only for small parts of the respective samples or small sub-sectors of the economies considered. Publicly performed R&D stimulates private R&D. The exceptions from these dominant results concern firm size, interaction of policy instruments, and effectiveness of parts of publicly performed R&D. Important suggestions for future research derived from the literature review are use of dynamic models with time lags and taking into account the effects of country and firm heterogeneity.

Suggested Citation

  • Thomas H. W. Ziesemer, 2021. "The Effects of R&D Subsidies and Publicly Performed R&D on Business R&D: A Survey," Hacienda Pública Española / Review of Public Economics, IEF, vol. 236(1), pages 171-205, March.
    • Handle: RePEc:hpe:journl:y:2021:v:236:i:1:p:171-205
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    Cited by:

    1. Sebastian Aparicio & David Audretsch & David Urbano, 2022. "Governmental Support for Entrepreneurship in Spain: An Institutional Approach," Hacienda Pública Española / Review of Public Economics, IEF, vol. 243(4), pages 29-49, December.
    2. Reynaldo Senra Hodelin, 2022. "A Schumpeterian growth model on the effect of development banking on growth," Economic Change and Restructuring, Springer, vol. 55(2), pages 607-634, May.
    3. Ziesemer, Thomas, 2020. "Semi-endogenous growth models with domestic and foreign private and public R&D linked to VECMs with evidence for five countries," MERIT Working Papers 2020-013, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    4. Kosta Josifidis & Novica Supic, 2020. "Innovation and Income Inequality in the USA: Ceremonial versus Institutional Changes," Journal of Economic Issues, Taylor & Francis Journals, vol. 54(2), pages 486-494, April.
    5. Thomas H. W. Ziesemer, 2022. "Foreign R&D spillovers to the USA and strategic reactions," Applied Economics, Taylor & Francis Journals, vol. 54(37), pages 4274-4291, August.
    6. Giovanna Ciaffi & Matteo Deleidi & Stefano Di Bucchianico, 2022. "Stagnation despite ongoing innovation: Is R&D expenditure composition a missing link? An empirical analysis for the US (1948-2019)," Department of Economics University of Siena 877, Department of Economics, University of Siena.

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    More about this item

    Keywords

    Research & Development; Business R&D; Subsidies; Public R&D.;
    All these keywords.

    JEL classification:

    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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