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Innovation subsidies: Does the funding source matter for innovation intensity and performance? Empirical evidence from Germany

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  • CZARNITZKI Dirk
  • LOPES BENTO Cindy

Abstract

Applying a variant of a non-parametric matching estimator, we consider European funding and national funding as heterogeneous treatments, distinguishing and simultaneously analyzing the effect these treatments have on innovation input and performance. In terms of input, getting funding from both sources yields the highest impact. If funding from only one source is received, EU grants have higher effects. In terms of output, holding innovation expenditures constant, funding from both sources display higher sales of market novelties and future patent applications at the firm level. If only one grant is obtained, we find superiority for national funding.

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Bibliographic Info

Paper provided by CEPS/INSTEAD in its series CEPS/INSTEAD Working Paper Series with number 2011-42.

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Length: 44 pages
Date of creation: Aug 2011
Date of revision:
Handle: RePEc:irs:cepswp:2011-42

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Keywords: Subsidies; Innovation; Policy Evaluation; Treatment effects; Nonparametric matching estimation;

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Citations

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Cited by:
  1. LOPES BENTO Cindy & CZARNITZKI Dirk, 2012. "Value for money? New microeconomic evidence on public R&D grants in Flanders," CEPS/INSTEAD Working Paper Series, CEPS/INSTEAD 2012-19, CEPS/INSTEAD.
  2. Czarnitzki, Dirk & Lopes-Bento, Cindy, 2012. "Value for money? New microeconometric evidence on public R&D grants in Flanders," ZEW Discussion Papers, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research 12-034, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  3. Ensthaler, Ludwig & Giebe, Thomas, 2010. "A dynamic auction for multi-object procurement under a hard budget constraint," Discussion Paper Series of SFB/TR 15 Governance and the Efficiency of Economic Systems, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University 310, Free University of Berlin, Humboldt University of Berlin, University of Bonn, University of Mannheim, University of Munich.
  4. Dezhina, I. & Simachev, Yu., 2013. "Matching Grants for Stimulating Partnerships between Companies and Universities in Innovation Area: Initial Effects in Russia," Journal of the New Economic Association, New Economic Association, New Economic Association, vol. 19(3), pages 99-122.
  5. Huergo, Elena & Moreno, Lourdes, 2014. "National or international public funding? Subsidies or loans? Evaluating the innovation impact of R&D support programmes," MPRA Paper 54218, University Library of Munich, Germany.
  6. Victoria Castillo & Alessandro Maffioli & Sofía Rojo & Rodolfo Stucchi, 2014. "The effect of innovation policy on SMEs’ employment and wages in Argentina," Small Business Economics, Springer, Springer, vol. 42(2), pages 387-406, February.

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