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Are Firms That Received R&D Subsidies More Innovative?

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Author Info
Mohnen, Pierre () (UNU-MERIT and Maastricht University)
Bérubé, Charles (Industry Canada)

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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.

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File URL: http://www.merit.unu.edu/publications/wppdf/2007/wp2007-015.pdf
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Publisher Info
Paper provided by United Nations University, Maastricht Economic and social Research and training centre on Innovation and Technology in its series UNU-MERIT Working Paper Series with number 015.

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Date of creation: 2007
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Handle: RePEc:dgr:unumer:2007015

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Web page: http://www.merit.unu.edu

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Related research
Keywords: Innovations; R&D; Matching Estimators; Mahalanobis; Innovation Survey; Tax Credits; Grants;

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Find related papers by JEL classification:
O31 - Economic Development, Technological Change, and Growth - - Technological Change - - - Innovation and Invention: Processes and Incentives
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy
C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: General - - - Estimation
H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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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 2009-12-3.

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