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R&D and Subsidies at the Firm Level : An Application of Parametric and Semi-Parametric Two-Step Selection Models

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Author Info
Hussinger, Katrin

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Abstract

This paper analyzes the effects of public R&D subsidies on R&D expenditure in the German manufacturing sector. The focus is on the question whether public R&D funding stimulates or crowds out private investment. Cross sectional data at the firm level is used. By apllying parametric and semiparametric selection models, it turns out that public funding increases firms? R&D expenditure. Altough the magnitude of the treatment effect depends on the assumptions imposed by the particular selection model. --

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 03-63.

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Date of creation: 2003
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Handle: RePEc:zbw:zewdip:1493

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Related research
Keywords: Innovation; Public R&D Subsidies; Policy Evaluation; Parametric and Semiparametric Two-Step Selection Models;

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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
C24 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Truncated and Censored Models
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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    Other versions:
  2. Paul A. David & Bronwyn H. Hall & Andrew A. Toole, 1999. "Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence," Working Papers 99023, Stanford University, Department of Economics. [Downloadable!]
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  12. Czarnitzki, Dirk & Hussinger, Katrin, 2004. "The Link Between R&D Subsidies, R&D Spending and Technological Performance," ZEW Discussion Papers 04-56, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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Full references

Cited by:
(explanations, 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.)

  1. David Marmet, 2004. "Growth of New Firms : Which Factors Influence Post-Entry Performance? An Empirical Analysis Based on Swiss Firm Data," KOF Working papers 04-97, KOF Swiss Economic Institute, ETH Zurich. [Downloadable!]
  2. João Alberto De Negri & Mauro Borges Lemos & Fernanda De Negri, 2006. "The Impact of University Enterprise Incentive Program on the Performance and Technological Efforts of Brazilian Industrial Firms," OVE Working Papers 1306, Inter-American Development Bank, Office of Evaluation and Oversight (OVE). [Downloadable!]
  3. João Alberto De Negri & Mauro Borges Lemos & Fernanda De Negri, 2006. "Impact of P&D Incentive Program on the Performance and Technological Efforts of Brazilian Industrial Firms," OVE Working Papers 1406, Inter-American Development Bank, Office of Evaluation and Oversight (OVE). [Downloadable!]
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