Two for the price of one? On additionality effects of R&D subsidies: a comparison between Flanders and Germany


Aerts, Kris ; Schmidt, Tobias


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URL: http://ub-madoc.bib.uni-mannheim.de/1447
URN: urn:nbn:de:bsz:180-madoc-14479
Document Type: Working paper
Year of publication: 2006
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: C14 C21 H50 O38 ,
Subject headings (SWD): Forschung und Entwicklung , Staatliche Forschung , Subvention , Evaluation
Keywords (English): R&D , Subsidies , Policy Evaluation , Conditional Difference-in-Difference
Abstract: In this paper we empirically test whether public R&D subsidies crowd out private R&D investment in Flanders and Germany, using firm level data from the Flemish and German part of the Community Innovation survey (CIS III and IV). Both the non-parametric matching estimator and the conditional difference-in-difference estimator with repeated cross-sections (CDiDRCS) clearly indicate that the crowding-out hypothesis can be rejected: funded firms are significantly more R&D active than non-funded firms. In the domain of additionality effects of R&D subsidies, this paper is the first to apply the CDiDRCS method.
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Aerts, Kris ; Schmidt, Tobias (2006) Two for the price of one? On additionality effects of R&D subsidies: a comparison between Flanders and Germany. Open Access [Working paper]
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