The objective of this paper is to contribute to the empirical literature that evaluates the effects of public R&D support on private R&D investment. We apply a matching approach to analyze the effects of public R&D support in Spanish manufacturing firms. We examine whether or not the effects are different depending on the firms' size and the technological level of the sectors in which the firms operate. We evaluate the effect of R&D subsidies on the subsidized firms, considering both the effect of subsidies on firms that would have performed R&D in the absence of public support and also the effect of inducement to undertake R&D activities. We also analyze the effect that concession of subsidies might have on firms which do not enjoy this type of support. The main conclusions indicate absence of "crowding-out", either full or partial, between public and private spending and that some firms-mainly small and operating in low technology sectors-might not have engaged in R&D activities in the absence of subsidies.

This paper analyzes the effects of R&D and worker training on innovation performance in a sample of Spanish manufacturing firms while distinguishing between large and small firms. Our findings suggest that R&D is a key factor in explaining firm innovation performance, and that worker training investment also has a significant effect, albeit one of less magnitude. The results confirm a complementary relationship: training reinforces the effect of R&D on innovation performance. The effects differ according to firm size and industry.

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This study analyses the extent of geographical concentration of Spanish industry between 1993 and 1999, and studies the agglomeration economies that could underlie that concentration. The results confirm that there is major geographic concentration in a number of industries with widely varying characteristics, including high-tech businesses and those linked to the provision of natural resources as well as traditional industries. The analysis of the scope of spillovers behind this agglomeration supports the idea that transportation costs may induce plants in some industries to locate near their customers and suppliers. However, one cannot conclude that this is a common fact for all industries. This study also shows that the higher the technological level of an industry, the higher the agglomeration it experiences. This result implies the importance of the labour market, informational spillovers and producer services location for the agglomeration of these industries.

In this paper we derive the optimal two-part tari¤ contract for the licensing of a costreducing innovation to a di¤erentiated goods industry of a general size. We analyze the cases where the patentee is an independent laboratory or an incumbent …rm. We show that regardless of the number of …rms, the degree of product di¤erentiation and the type of patentee, the innovation is licensed to all …rms. Moreover, we endogenize R&D investment and obtain that an internal patentee invests more (less) in R&D when the technological opportunity is low (high), which is supported by an empirical test using data on R&D expenditures of Spanish manufacturing …rms.