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Mixed R&D incentives: the effect of R&D subsidies on patented inventions

Author

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  • Schneider, Cedric

    (Department of Economics, Copenhagen Business School)

Abstract

This paper analyzes the effects of mixed public-private R&D incentives and empirically tests whether patents that were publicly sponsored are more important than non-subsidized ones. Blending patents and public subsidies will allow the funding agency to subsidize inventions that would otherwise not elicit investment because the private incentive will not fully cover the cost of the invention. Thus, the policy maker will only subsidize inventions that have a high social value. The empirical analysis shows that subsidized inventions result in more important patents, as measured by the number of forward citations.

Suggested Citation

  • Schneider, Cedric, 2008. "Mixed R&D incentives: the effect of R&D subsidies on patented inventions," Working Papers 06-2008, Copenhagen Business School, Department of Economics.
  • Handle: RePEc:hhs:cbsnow:2008_006
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    File URL: http://openarchive.cbs.dk/cbsweb/handle/10398/7662
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    Cited by:

    1. Koehler, Mila & Peters, Bettina, 2017. "Subsidized and non-subsidized R&D projects: Do they differ?," ZEW Discussion Papers 17-042, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.

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    JEL classification:

    • G10 - Financial Economics - - General Financial Markets - - - General (includes Measurement and Data)

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