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Are Firms That Received R&D Subsidies More Innovative?

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Author Info
Charles Bérubé
Pierre Mohnen ()

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Abstract

This paper looks at the effectiveness of R&D grants for Canadian plants that already benefit from R&D tax credits. Using a non-parametric matching estimator, we find that firms that benefited from both policy measures introduced more new products than their counterparts that only benefited from R&D tax incentives. They also made more world-first product innovations and were more successful in commercializing their innovations.

Cette étude examine l’efficacité des subventions à la recherche-développement pour les établissements canadiens qui bénéficient déjà de crédits d’impôt à la recherche. En utilisant un estimateur non-paramétrique d’appariement, nous trouvons que les établissements qui bénéficient des deux mesures de soutien à la recherche introduisent plus de nouveaux produits sur le marché que ceux qui ne bénéficient que des crédits d’impôt. Ils réussissent aussi à mettre plus de premières mondiales sur le marché et à mieux commercialiser leurs nouveaux produits.

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Paper provided by CIRANO in its series CIRANO Working Papers with number 2007s-13.

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Date of creation: 01 May 2007
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Handle: RePEc:cir:cirwor:2007s-13

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Related research
Keywords: Innovations; R&D; matching estimators; R&D tax credits; R&D grants; innovations; R-D; estimateur d’appariement; crédits d’impôt à la recherche; subventions à la recherche;

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Find related papers by JEL classification:
C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Semiparametric and Nonparametric Methods
C25 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Discrete Regression and Qualitative Choice Models
H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy

Cited by:
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  1. Cerulli Giovanni & Poti' Bianca, 2008. "Evaluating the Effect of Public Subsidies on firm R&D activity: an Application to Italy Using the Community Innovation Survey," CERIS Working Paper 200809, Institute for Economic Research on Firms and Growth - Moncalieri (TO). [Downloadable!]
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This page was last updated on 2009-12-19.


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