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We explore the interaction between public support for R&D and appropriability using a dataset constructed from the Spanish Community Innovation Survey, for the period 2000-2005. We find that public support policy is less able to stimulate privately financed internal R&D in firms where appropriability mechanisms are more effective. On average, the effect of public support for R&D is three times larger for those firms reporting a level of appropriability below the median vis-à-vis those firms for which appropriability is above the median level. Furthermore, for supported firms with the highest degree of appropriability, crowding out cannot be ruled out. Copyright 2009 The Authors. Journal compilation 2009 Blackwell Publishing Ltd. and the Editorial Board of The Journal of Industrial Economics.

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  • Liliana Gelabert & Andrea Fosfuri & Josep A. Tribó, 2009. "DOES THE EFFECT OF PUBLIC SUPPORT FOR R&D DEPEND ON THE DEGREE OF APPROPRIABILITY? -super-," Journal of Industrial Economics, Wiley Blackwell, vol. 57(4), pages 736-767, December.
  • Handle: RePEc:bla:jindec:v:57:y:2009:i:4:p:736-767

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    References listed on IDEAS

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    Cited by:

    1. repec:nea:journl:y:2017i:34:p:59-93 is not listed on IDEAS
    2. Abraham Garcia, 2011. "The European Research Framework Programme and innovation performance of companies. An empirical impact assessment using a CDM model," JRC Working Papers on Corporate R&D and Innovation 2011-07, Joint Research Centre (Seville site).
    3. Aguiar, Luis & Gagnepain, Philippe, 2017. "European cooperative R&D and firm performance: Evidence based on funding differences in key actions," International Journal of Industrial Organization, Elsevier, vol. 53(C), pages 1-31.
    4. Takalo, Tuomas & Tanayama, Tanja & Toivanen, Otto, 2013. "Market failures and the additionality effects of public support to private R&D: Theory and empirical implications," International Journal of Industrial Organization, Elsevier, vol. 31(5), pages 634-642.
    5. Goerke, Björn & Albers, Sönke, 2016. "Long-term effects of subsidies on firm growth: introducing the concept of outcome additionality," EconStor Preprints 142164, ZBW - German National Library of Economics.

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