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R&D Subsidies And Firm-Level Productivity: Evidence From France

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Author Info

  • Aminata SISSOKO

    ()
    (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

This paper attempts to provide a new insight into the relationship between R&D subsidies and firm-level productivity. The empirical analysis evaluates the productivity of firms involved in a European program of public R&D grants called Eureka. The findings suggest that the Eureka firms on average experience productivity gains towards the end of the 3-years grant period. However, the average increase in productivity hides substantial firm heterogeneity. Namely it hides that low productive firms gain more from an R&D subsidy than high productive firms. The empirical analysis is conducted by using propensity score matching and a difference-in-differences estimation method to control for potential endogeneity issues.

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File URL: http://sites.uclouvain.be/econ/DP/IRES/2011002.pdf
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Bibliographic Info

Paper provided by Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES) in its series Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) with number 2011002.

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Length: 33
Date of creation: 28 Jan 2011
Date of revision: 24 Oct 2013
Handle: RePEc:ctl:louvir:2011002

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Web page: http://www.uclouvain.be/ires
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Related research

Keywords: R&D subsidies; Collaborative Research; Total Factors Productivity and Firm Heterogeneity;

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  1. Roediger-Schluga, Thomas & Barber, Michael J., 2007. "R&D collaboration networks in the European FrameworkProgrammes: Data processing, network construction and selected results," MERIT Working Papers 032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
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Cited by:
  1. Kaiser, Ulrich & Kuhn, Johan M., 2012. "Long-run effects of public–private research joint ventures: The case of the Danish Innovation Consortia support scheme," Research Policy, Elsevier, vol. 41(5), pages 913-927.
  2. d'Artis Kancs & Boriss Siliverstovs, 2012. "R&D and Non-Linear Productivity Growth of Heterogeneous Firms," JRC-IPTS Working Papers JRC77247, Institute for Prospective and Technological Studies, Joint Research Centre, revised Dec 2012.

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