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• Oliviero Antonio Carboni

This paper uses a comprehensive firm level data set for the manufacturing sector in Italy to investigate the effect of government support on privately financed R&D expenditure. Estimates from a two-step equation model suggest that public assistance has a positive effect on private R&D investment. A non parametric matching procedure is also used to investigate the same effect. Here again the results suggest that the recipient firms achieve more private R&D than they would have without public support. The paper also examines whether public funding effects the financial sources available for R&D and finds that grants encourage credit financing for R&D. The effects on the use of internal sources are not conclusive.

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Paper provided by Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia in its series Working Paper CRENoS with number 200815.

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Date of creation: 2008
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Handle: RePEc:cns:cnscwp:200815

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Related research

Keywords: Applied Econometrics; matching; public subsidies; R&D investment;

Find related papers by JEL classification:
C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models
L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
O30 - Economic Development, Technological Change, and Growth - - Technological Change - - - General
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy
O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

This paper has been announced in the following NEP Reports:

• NEP-ALL-2008-11-04 (All new papers)
• NEP-INO-2008-11-04 (Innovation)
• NEP-IPR-2008-11-04 (Intellectual Property Rights)
• NEP-KNM-2008-11-04 (Knowledge Management & Knowledge Economy)
• NEP-MIC-2008-11-04 (Microeconomics)
• NEP-PPM-2008-11-04 (Project, Program & Portfolio Management)

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This page was last updated on 2009-11-27.