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How Effective are Government R&D Subsidies: The Empirical Evidence

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  • Fölster, Stefan

    (Research Institute of Industrial Economics (IFN))

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    Abstract

    Government subsidized industrial R & D stands for a large and increasing segment of the total R & D conducted. Yet very little is known about the effectiveness of such subsidies. This paper summarizes the empirical literature concerning direct project subsidies, tax credits, and support for industrial research institutes. This helps to identify what makes government policy effective from the government's perspective and how it affects firms.

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    File URL: http://www.ifn.se/wfiles/wp/wp187.pdf
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    Bibliographic Info

    Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 187.

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    Length: 23 pages
    Date of creation: Dec 1987
    Date of revision:
    Handle: RePEc:hhs:iuiwop:0187

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    Postal: Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden
    Phone: +46 8 665 4500
    Fax: +46 8 665 4599
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    Web page: http://www.ifn.se/
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    Related research

    Keywords: Subsidies; R&D; summary;

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    Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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    1. John Scott, 1984. "Firm versus Industry Variability in R&D Intensity," NBER Chapters, in: R & D, Patents, and Productivity, pages 233-248 National Bureau of Economic Research, Inc.
    2. Weitzman, Martin L, 1980. "Efficient Incentive Contracts," The Quarterly Journal of Economics, MIT Press, vol. 94(4), pages 719-30, June.
    3. Glenn C. Loury, 1976. "Market Structure and Innovation," Discussion Papers 256, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
    4. Link, Albert N, 1981. "Basic Research and Productivity Increase in Manufacturing: Additional Evidence," American Economic Review, American Economic Association, vol. 71(5), pages 1111-12, December.
    5. Lichtenberg, Frank R, 1984. "The Relationship between Federal Contract R&D and Company R&D," American Economic Review, American Economic Association, vol. 74(2), pages 73-78, May.
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