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The legacy of public subsidies for innovation: input, output and behavioural additionality effects

Author

Listed:
  • Stephen Roper

    (Warwick University Business School)

  • Nola Hewitt-Dundas

    (Queen's University Belfast)

Abstract

In many countries significant amounts of public funding are devoted to supporting firms’ R&D and innovation projects. Here, using panel data on the innovation activities of Irish manufacturing firms we examine the legacy effects of public subsidies for new product development and R&D. We examine five alternative mechanisms through which such effects may occur: input additionality, output additionality, and congenital, inter-organisational and experiential behavioural additionality. Tests suggest contrasting legacy effects with R&D subsidies generating legacy output additionality effects while new product development subsidies have legacy congenital and inter-organisational behavioural additionality effects. Our results have implications for innovation policy design and evaluation.

Suggested Citation

  • Stephen Roper & Nola Hewitt-Dundas, 2014. "The legacy of public subsidies for innovation: input, output and behavioural additionality effects," Research Papers 0021, Enterprise Research Centre.
    • Handle: RePEc:enr:rpaper:0021
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    File URL: http://enterpriseresearch.ac.uk/our-work/publications/
    File Function: First version, 2014
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    Cited by:

    1. Caloffi, Annalisa & Mariani, Marco & Rossi, Federica & Russo, Margherita, 2018. "A comparative evaluation of regional subsidies for collaborative and individual R&D in small and medium-sized enterprises," Research Policy, Elsevier, vol. 47(8), pages 1437-1447.

    More about this item

    Keywords

    innovation policy; additionality; evaluation; Ireland;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • Q34 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Natural Resources and Domestic and International Conflicts
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship

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