Two for the Price of One? On Additionality Effects of R&D Subsidies: A Comparison between Flanders and Germany
ZEW - Centre for European Economic Research Discussion Paper No. 06-063
KUL Working Paper No. MSI 0607
29 Pages Posted: 22 Sep 2006 Last revised: 26 Aug 2008
Date Written: 2006
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.
Keywords: R&D, Subsidies, Policy Evaluation, Conditional Difference-in-Difference
JEL Classification: C14, C21, H50, O38
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence
By Paul A. David, Bronwyn H. Hall, ...
-
The Impact of Corporate Restructuring on Industrial Research and Development
-
How Effective are Fiscal Incentives for R&D? a New Review of the Evidence
By Bronwyn H. Hall and John Van Reenen
-
An Empirical Evaluation of the Effects of R&D Subsidies
By Isabel Busom
-
Does Government R&D Policy Mainly Benefit Scientists and Engineers?
-
Do R&D Subsidies Stimulate or Displace Private R&D? Evidence from Israel
By Saul Lach
-
Public R&D Policies and Cost Behavior of the Us Manufacturing Industries