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

  • Aerts, Kris
  • Schmidt, Tobias

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 Surveys (CIS III and IV). Both the non-parametric matching estimator and the conditional difference-in-differences 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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Article provided by Elsevier in its journal Research Policy.

Volume (Year): 37 (2008)
Issue (Month): 5 (June)
Pages: 806-822

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Handle: RePEc:eee:respol:v:37:y:2008:i:5:p:806-822
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