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Two for the price of one? On additionality effects of R&D subsidies: A comparison between Flanders and Germany

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  • Aerts, Kris
  • Schmidt, Tobias

Abstract

In this paper we empirically test whether public R&D subsidies crowd out private R&D investment in Flanders and Germany, using firm level data from the Flemish and German part of the Community Innovation survey (CIS III and IV). Both the non-parametric matching estimator and the conditional difference-in-difference estimator with repeated cross-sections (CDiDRCS) clearly indicate that the crowding-out hypothesis can be rejected: funded firms are significantly more R&D active than non-funded firms. In the domain of additionality effects of R&D subsidies, this paper is the first to apply the CDiDRCS method. --

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Bibliographic Info

Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 06-63.

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Date of creation: 2006
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Handle: RePEc:zbw:zewdip:5457

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Keywords: R&D; Subsidies; Policy Evaluation; Conditional Difference-in-Difference;

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References

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