IDEAS home Printed from https://ideas.repec.org/p/ulb/ulbeco/2013-386958.html

The effectiveness of subsidies revisited: Accounting for wage and employment effects in business R&D

Author

Listed:
  • Guntram Wolff
  • Volker Reinthaler

Abstract

The present paper investigates the effectiveness of public subsidies on business enterprise research in a panel of OECD countries. We contribute to the literature by explicitly distinguishing between the effects of a subsidy on R&D employment and expenditure, thereby accounting for a potential increase in scientists' wages. We employ instrumental variable regressions to address endogeneity problems of the subsidization. The results indicate that subsidies are effective in generating additional research expenditure. Expenditure for business research increases by roughly 20% more than employment. We take this as evidence that subsidies may raise scientists' wages given standard production functions.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Guntram Wolff & Volker Reinthaler, 2008. "The effectiveness of subsidies revisited: Accounting for wage and employment effects in business R&D," ULB Institutional Repository 2013/386958, ULB -- Universite Libre de Bruxelles.
    • Handle: RePEc:ulb:ulbeco:2013/386958
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    Other versions of this item:

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ulb:ulbeco:2013/386958. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Benoit Pauwels (email available below). General contact details of provider: https://edirc.repec.org/data/ecsulbe.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.