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R&D Subsidies And Firm-Level Productivity: Evidence From France

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  • Aminata SISSOKO

    () (UNIVERSITE CATHOLIQUE DE LOUVAIN, Institut de Recherches Economiques et Sociales (IRES))

Abstract

This paper attempts to provide a new insight into the relationship between R&D subsidies and firm-level productivity. The empirical analysis evaluates the productivity of firms involved in a European program of public R&D grants called Eureka. The findings suggest that the Eureka firms on average experience productivity gains towards the end of the 3-years grant period. However, the average increase in productivity hides substantial firm heterogeneity. Namely it hides that low productive firms gain more from an R&D subsidy than high productive firms. The empirical analysis is conducted by using propensity score matching and a difference-in-differences estimation method to control for potential endogeneity issues.

Suggested Citation

  • Aminata SISSOKO, 2011. "R&D Subsidies And Firm-Level Productivity: Evidence From France," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2011002, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES), revised 24 Oct 2013.
  • Handle: RePEc:ctl:louvir:2011002
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    File URL: http://sites.uclouvain.be/econ/DP/IRES/2011002.pdf
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    References listed on IDEAS

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    1. Roediger-Schluga, Thomas & Barber, Michael J., 2007. "R&D collaboration networks in the European FrameworkProgrammes: Data processing, network construction and selected results," MERIT Working Papers 032, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
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    Cited by:

    1. Kancs, d’Artis & Siliverstovs, Boriss, 2016. "R&D and non-linear productivity growth," Research Policy, Elsevier, vol. 45(3), pages 634-646.
    2. Javad Sadeghzadeh, 2014. "Innovation Subsidies: Misallocation and Technology Upgrade," 2014 Papers psa1207, Job Market Papers.
    3. Amel Ben Abdesslem & Raphaël Chiappini, 2016. "Cluster Policy and Firm Performance: A Case Study of the French Optic/Photonic Industry," GREDEG Working Papers 2016-26, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
    4. Riccardo Crescenzi & Mara Giua & Guido de Blasio, 2018. "Cohesion Policy Incentives for Collaborative Industrial Research. The Evaluation of a Smart Specialisation Forerunner Programme," SERC Discussion Papers 0231, Spatial Economics Research Centre, LSE.
    5. Riccardo Crescenzi & Guido de Blasio & Mara Giua, 2017. "Cohesion Policy Incentives for Collaborative Industrial Research. The Evaluation of a Smart Specialisation Forerunner Programme," Department of Economics University of Siena 769, Department of Economics, University of Siena.
    6. Kaiser, Ulrich & Kuhn, Johan M., 2012. "Long-run effects of public–private research joint ventures: The case of the Danish Innovation Consortia support scheme," Research Policy, Elsevier, vol. 41(5), pages 913-927.

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    Keywords

    R&D subsidies; Collaborative Research; Total Factors Productivity and Firm Heterogeneity;

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