The impact of R&D subsidies on R&D employment composition
AbstractIn this paper we examine the impact of subsidies granted at national and regional levels on a set of R&D employment variables and, specifically, we seek to identify the existence of the behavioural additionality effects of these public subsidies on firms’ R&D human resources. We begin by assessing the effects of public funds on R&D private expenditures and on the number of R&D employees, and then focus on their impact on the composition of human resources engaged in R&D as classified by occupation and level of education. The data used correspond to the Spanish Technological Innovation Panel for the period 2006-2011. To control for selection bias and endogeneity, a combination of non-parametric matching techniques are implemented. After ruling out the existence of crowding out effects, our results show that R&D subsidies increase the number of R&D employees. However, no increase is found in the average level of qualification of R&D staff members in subsidized firms. All in all, the effects of public support are heterogeneous being dependent on the source of the subsidy and the firms’ characteristics.
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Bibliographic InfoPaper provided by Institut d'Economia de Barcelona (IEB) in its series Working Papers with number 2014/22.
Length: 34 pages
Date of creation: 2014
Date of revision:
R&D subsidies; R&D employment; matching estimators; technology policy;
Find related papers by JEL classification:
- O38 - Economic Development, Technological Change, and Growth - - Technological Change; Research and Development; Intellectual Property Rights - - - Government Policy
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
- C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
This paper has been announced in the following NEP Reports:
- NEP-ALL-2014-07-27 (All new papers)
- NEP-ALL-2014-07-28 (All new papers)
- NEP-CSE-2014-07-28 (Economics of Strategic Management)
- NEP-EUR-2014-07-28 (Microeconomic European Issues)
- NEP-INO-2014-07-28 (Innovation)
- NEP-KNM-2014-07-28 (Knowledge Management & Knowledge Economy)
- NEP-SBM-2014-07-28 (Small Business Management)
- NEP-TID-2014-07-28 (Technology & Industrial Dynamics)
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