Are RαD subsidies a substitute or a complement to privately funded RαD ?. An econometric analysis at the firm level
This study examines the effect of research and development subsidies on the private funding of RαD in France. We address this issue from the annual RαD survey over 1985-1997, which provides information about the RαD subsidies given by all the ministries to the firms having at least one full-time person working on RαD. In order to determine whether the supported firms would have invested the same amount of private RαD without the subsidies, we use matching methods. We show that the use of these methods is important because the global evaluations, in this paper, more often give a potential effect among the non-supported firms than a real effect among the supported firms. We first study the probability to get a subsidy. We find that this probability is increasing with size, the debt ratio and the importance of privately funded RαD. In a second step, controlling for the past public support the firms benefited from, we find that, on average, public funds add to private funds, so that there would be no significant crowding out effect.
Volume (Year): 114 (2004)
Issue (Month): 2 ()
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References listed on IDEAS
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- Crepon, B. & Duguet, E. & Mairesse, J., 1998. "Research Investment, Innovation and Productivity: An Econometric Analysis at the Firm Level," Papiers d'Economie MathÃ©matique et Applications 98.15, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
- Crepon, B. & Duguet, E. & Kabla, I., 1995. "A Moderate Support to Schumpeterian Conjectures from Various Innovation Measures," Papiers d'Economie MathÃ©matique et Applications 95.06, UniversitÃ© PanthÃ©on-Sorbonne (Paris 1).
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- Lööf, Hans & Heshmati, Almas & Asplund, Rita & Nåås, Svein-Olav, 2001. "Innovation and Performance in Manufacturing Industries: A Comparison of the Nordic Countries," SSE/EFI Working Paper Series in Economics and Finance 0457, Stockholm School of Economics. Full references (including those not matched with items on IDEAS)