Public R&D Subsidies, Outside Private Support, and Employment Growth
In the aftermath of the passage of the American Recovery and Reinvestment Act of 2009, the employment effects of public subsidies have been scrutinized because of new emphasis on public accountability and transparency. In this paper we investigate conditions in which public subsidies of research and development (R&D) in small firms stimulate employment growth. We find, based on an empirical analysis of employment growth induced by U.S. Department of Defense Small Business Innovation Research (SBIR) program awards, that the stimulated employment growth is greater under two conditions: one, the presence of outside investors providing additional funding for the R&D, and two, when an exceptional amount of intellectual property is created by the publicly subsidized R&D. In addition to outside investors, other firms that make commercial agreements with the subsidized firm appear important for the employment growth of the subsidized firm. Cooperation between the small business doing the R&D and other firms is an important determinant of the commercial success of the technologies created with the support of public funds.
|Date of creation:||22 Feb 2013|
|Contact details of provider:|| Postal: Box 26165, Greensboro, NC 27402-6165|
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- Albert Link & John Scott, 2012.
"The exploitation of publicly funded technology,"
The Journal of Technology Transfer,
Springer, vol. 37(3), pages 375-383, June.
- Albert Link & John Scott, 2012. "Employment growth from the Small Business Innovation Research program," Small Business Economics, Springer, vol. 39(2), pages 265-287, September.
- Link, Albert N. & Scott, John T., 2011.
"Employment Growth from Public Support of Innovation in Small Firms,"
11-17, University of North Carolina at Greensboro, Department of Economics.
- Albert N. Link & John T. Scott, 2013. "Employment growth from public support of innovation in small firms," Chapters, in: Public Support of Innovation in Entrepreneurial Firms, chapter 3, pages 41-64 Edward Elgar Publishing.
- Albert N. Link & John T. Scott, 2012. "Employment Growth from Public Support of Innovation in Small Firms," Books from Upjohn Press, W.E. Upjohn Institute for Employment Research, number eg, 06.
- Albert N. Link & John T. Scott, 2012. "Employment growth from public support of innovation in small firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 21(7), pages 655-678, October.
- Link, Albert N. & Scott, John T., 2010.
"Government as entrepreneur: Evaluating the commercialization success of SBIR projects,"
Elsevier, vol. 39(5), pages 589-601, June.
- Albert N. Link & John T. Scott, 2013. "Governments as entrepreneur: Evaluating the commercialization success of SBIR projects," Chapters, in: Public Support of Innovation in Entrepreneurial Firms, chapter 2, pages 25-38 Edward Elgar Publishing.
- José Ángel Zúñiga-Vicente & César Alonso-Borrego & Francisco J. Forcadell & José I. Galán, 2014.
"Assessing The Effect Of Public Subsidies On Firm R&D Investment: A Survey,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 28(1), pages 36-67, 02.
- Alonso-Borrego, César & Zúñiga-Vicente, José Ángel & Forcadell, Francisco Javier & Galán-Zazo, José I., 2012. "Assessing the effect of public subsidies on firm R&D investment : a survey," UC3M Working papers. Economics we1215, Universidad Carlos III de Madrid. Departamento de Economía.
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