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The Effects of Public R&D Subsidies on Firms' Innovation Activities: The Case of Eastern Germany

  • Almus, Matthias
  • Czarnitzki, Dirk

This study analyzes the effects of public R&D policy schemes on the innovation activities of firms in Eastern Germany. The main question in this context is whether public funds stimulate R&D activities or simply crowd out privately financed R&D. Empirically, we investigate the average causal effects of all public R&D schemes in Eastern Germany using a nonparametric matching approach. Compared to the case in which no public financial means are provided, it turns out that firms increase their innovation activities by about four percentage points.

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Article provided by American Statistical Association in its journal Journal of Business and Economic Statistics.

Volume (Year): 21 (2003)
Issue (Month): 2 (April)
Pages: 226-36

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Handle: RePEc:bes:jnlbes:v:21:y:2003:i:2:p:226-36
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  1. Orley Ashenfelter & David Card, 1984. "Using the Longitudinal Structure of Earnings to Estimate the Effect of Training Programs," NBER Working Papers 1489, National Bureau of Economic Research, Inc.
  2. Ashenfelter, Orley C, 1978. "Estimating the Effect of Training Programs on Earnings," The Review of Economics and Statistics, MIT Press, vol. 60(1), pages 47-57, February.
  3. LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-20, September.
  4. Almus, Matthias, 2001. "Evaluating the impact of public start-up assistance: results from an econometric approach," ZEW Discussion Papers 01-23, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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