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Who gets the money?: the dynamics of R&D project subsidies in Germany

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Author Info
Aschhoff, Birgit

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Abstract

This paper looks at which firms receive R&D project grants and how this public support evolves over time by considering in particular firm's previous participation. The question of the allocation of public R&D funding is becoming particularly important when it comes to identifying the effects of subsidies. Using firm-level data on German manufacturing and knowledge-intensive service firms, it turns out that participation in the funding scheme shows a rather high level of continuity. This is also confirmed by applying a multivariate approach. Firms who received funding in the past are more likely to be selected for public funding again. Moreover, a firm's size and knowledge capabilities increase the probability of entering the scheme. It is also revealed that in an analysis of the allocation of grants it is important to control for the overall supply of corresponding subsidies. --

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Publisher Info
Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 08-018 [rev.].

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Date of creation: 2009
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Handle: RePEc:zbw:zewdip:08018r

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Related research
Keywords: R&D; Public Subsidies; Program Participation; Germany;

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Find related papers by JEL classification:
C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy

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  1. Xulia González & Jordi Jaumandreu & Consuelo Pazo, 2005. "Barriers to Innovation and Subsidy Effectiveness," RAND Journal of Economics, The RAND Corporation, vol. 36(4), pages 930-949, Winter.
  2. Aerts, Kris & Czarnitzki, Dirk, 2004. "Using Innovation Survey Data to Evaluate R&D Policy : The Case of Belgium," ZEW Discussion Papers 04-55, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  3. Richard C. Levin & Alvin K. Klevorick & Richard R. Nelson & Sidney G. Winter, 1987. "Appropriating the Returns from Industrial Research and Development," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 18(1987-3), pages 783-832. [Downloadable!]
  4. Almus, Matthias & Czarnitzki, Dirk, 2003. "The Effects of Public R&D Subsidies on Firms' Innovation Activities: The Case of Eastern Germany," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(2), pages 226-36, April.
  5. Nguyen Van P. & Laisney F. & Kaiser U., 2004. "The Performance of German Firms in the Business-Related Service Sector: A Dynamic Analysis," Journal of Business & Economic Statistics, American Statistical Association, vol. 22, pages 274-295, July. [Downloadable!] (restricted)
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  6. Lerner, Josh, 1999. "The Government as Venture Capitalist: The Long-Run Impact of the SBIR Program," Journal of Business, University of Chicago Press, vol. 72(3), pages 285-318, July. [Downloadable!] (restricted)
  7. Dirk Czarnitzki & Georg Licht, 2006. "Additionality of public R&D grants in a transition economy," The Economics of Transition, The European Bank for Reconstruction and Development, vol. 14(1), pages 101-131, 03. [Downloadable!] (restricted)
  8. James D. Adams & Adam B. Jaffe, 1996. "Bounding the Effects of R&D: An Investigation Using Matched Establishment-Firm Data," NBER Working Papers 5544, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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