The Effects of Public R&D Subsidies on Firms' Innovation Activities: The Case of Eastern Germany


Almus, Matthias ; Czarnitzki, Dirk


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URL: http://ub-madoc.bib.uni-mannheim.de/505
URN: urn:nbn:de:bsz:180-madoc-5058
Document Type: Working paper
Year of publication: 2001
The title of a journal, publication series: None
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: O38 O31 C41 ,
Subject headings (SWD): Deutschland <Östliche Länder> , Forschung und Entwicklung , Fremdfinanzierung , Innovation
Abstract: This study analyzes the effects of public R&D policy schemes on the innovation activities of firms located in Eastern Germany. The main question in this context is whether public funds stimulate R&D activities or simply crowd out privately financed R&D. Empirically, we investigate the average causal effects of all public R&D schemes in Eastern Germany using a non–parametric matching approach. Compared to the case where no public financial means are provided, it turns out that firms increase their innovation activities by about four percentage points.
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