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(International) R&D collaboration and SMEs: The effectiveness of targeted public R&D support schemes

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  • Hottenrott, Hanna
  • Lopes-Bento, Cindy

Abstract

This study analyses the impact and effectiveness of targeted public support for R&D investment at the firm level. We test whether the policy design aiming at incentivizing (international) collaboration and R&D in SMEs achieves input as well as output additionality. Our results show that the targeted public subsidies trigger R&D spending, especially so in internationally collaborating SMEs. We further evaluate the different impact of privately financed and publicly-induced R&D investment on innovation performance. The results confirm that the publicly-induced R&D is productive as it translates into marketable product innovations. While both types of R&D investments trigger significant output effects, the effect of policyinduced R&D investment on sales from market novelties is highest for international collaborators as well as for SMEs.

Suggested Citation

  • Hottenrott, Hanna & Lopes-Bento, Cindy, 2013. "(International) R&D collaboration and SMEs: The effectiveness of targeted public R&D support schemes," DICE Discussion Papers 121, Heinrich Heine University Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    • Handle: RePEc:zbw:dicedp:121
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    More about this item

    Keywords

    Public Innovation Policy; Subsidies; R&D; SMEs; International Collaboration; Treatment Effects;
    All these keywords.

    JEL classification:

    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General
    • C30 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - General
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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