Direct and cross-scheme effects in a research and development subsidy program


Hottenrott, Hanna ; Lopes-Bento, Cindy ; Veugelers, Reinhilde


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URL: https://ub-madoc.bib.uni-mannheim.de/37426
URN: urn:nbn:de:bsz:180-madoc-374262
Document Type: Working paper
Year of publication: 2014
The title of a journal, publication series: ZEW Discussion Papers
Volume: 14-107
Place of publication: Mannheim
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: H23 , O31 , O38,
Keywords (English): R&D , complementarity , research subsidies , development subsidies , innovation policy
Abstract: This study investigates the effects of an R&D subsidy scheme on participating firms’ net R&D investment. Making use of a specific policy design in Belgium that explicitly distinguishes between research and development grants, we estimate direct and cross-scheme effects on research versus development intensities in recipients firms. We find positive direct effects from research (development) subsidies on net research (development) spending. This direct effect is larger for research grants than for development grants. We also find cross-scheme effects that may arise due to complementarity between research and development activities. Finally, we find that the magnitude of the treatment effects depends on firm size and age and that there is a minimum effective grant size, especially for research projects. The results support the view that public subsidies induce higher additional investment particularly in research where market failures are larger, even when the subsidies are targeting development.

Das Dokument wird vom Publikationsserver der Universitätsbibliothek Mannheim bereitgestellt.




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Hottenrott, Hanna ; Lopes-Bento, Cindy ; Veugelers, Reinhilde (2014) Direct and cross-scheme effects in a research and development subsidy program. Open Access ZEW Discussion Papers Mannheim 14-107 [Working paper]
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