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Public Funding of R&D and Growth: Firm-Level Evidence from Finland


  • H. Piekkola


This study considers employment and productivity growth generated by the public funding of R&D using linked employer-employee data in Finland. Public subsidies, instrumented by available public R&D funding in the industry/region, have a positive effect on productivity growth in small and medium-sized firms and in firms close to the top of their field in productivity.

Suggested Citation

  • H. Piekkola, 2007. "Public Funding of R&D and Growth: Firm-Level Evidence from Finland," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 16(3), pages 195-210.
  • Handle: RePEc:taf:ecinnt:v:16:y:2007:i:3:p:195-210 DOI: 10.1080/10438590600661897

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    References listed on IDEAS

    1. Levin, Sharon G & Stephan, Paula E, 1991. "Research Productivity over the Life Cycle: Evidence for Academic Scientists," American Economic Review, American Economic Association, vol. 81(1), pages 114-132, March.
    2. Blundell, Richard & Griffith, Rachel & Windmeijer, Frank, 2002. "Individual effects and dynamics in count data models," Journal of Econometrics, Elsevier, vol. 108(1), pages 113-131, May.
    3. Stephan, Paula E., 2010. "The Economics of Science," Handbook of the Economics of Innovation, Elsevier.
    4. Caroline Lanciano-morandat & Hiroatsu Nohara, 2003. "The New Production of Young Scientists (PhDs) A Labour Market Analysis in International Perspective," DRUID Working Papers 03-04, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
    5. Hausman, Jerry & Hall, Bronwyn H & Griliches, Zvi, 1984. "Econometric Models for Count Data with an Application to the Patents-R&D Relationship," Econometrica, Econometric Society, vol. 52(4), pages 909-938, July.
    6. Ashish Arora & Alfonso Gambardella, 1996. "Reputation and competence in publicly funded scientific research," Industrial Organization 9605002, EconWPA.
    7. Ernst R. Berndt & Zvi Griliches & Neal Rappaport, 1993. "Econometric Estimates of Prices Indexes for Personal Computers in the 1990s," NBER Working Papers 4549, National Bureau of Economic Research, Inc.
    8. R. E. Hall, 1968. "Technical Change and Capital from the Point of View of the Dual," Review of Economic Studies, Oxford University Press, vol. 35(1), pages 35-46.
    9. Andrea Bonaccorsi & Cinzia Daraio, 2003. "A robust nonparametric approach to the analysis of scientific productivity," Research Evaluation, Oxford University Press, vol. 12(1), pages 47-69, April.
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    Cited by:

    1. Gustavsson Tingvall, Patrik & Videnord, Josefin, 2017. "Regional Effects of Publicly Sponsored R&D Grants on SME Performance," Ratio Working Papers 289, The Ratio Institute.
    2. repec:oup:indcch:v:25:y:2016:i:6:p:955-975. is not listed on IDEAS
    3. Claudio Petti & Lauretta Rubini & Silvia Podetti, 2017. "Government Support and R&D Investment Effectiveness in Chinese SMEs: A Complex Relationship," Asian Economic Papers, MIT Press, vol. 16(1), pages 201-226, Winter/Sp.
    4. Albert N. Link & Christopher J. Ruhm, 2013. "Bringing science to market:commercializing from NIH SBIR awards," Chapters,in: Public Support of Innovation in Entrepreneurial Firms, chapter 1, pages 3-24 Edward Elgar Publishing.
    5. Liu, Rebecca & Rammer, Christian, 2016. "The contribution of different public innovation funding programs to SMEs' export performance," ZEW Discussion Papers 16-078, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
    6. Sergio Afcha & Jose García-Quevedo, 2016. "The impact of R&D subsidies on R&D employment composition," Industrial and Corporate Change, Oxford University Press, vol. 25(6), pages 955-975.
    7. Roberto Gabriele & Anna Giunta, 2012. "R&D Incentives: The Effectiveness Of A Place-Based Policy," Departmental Working Papers of Economics - University 'Roma Tre' 0169, Department of Economics - University Roma Tre.


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