Do Public Subsidies Complement Business R&amp;D? A Meta‐Analysis of the Econometric Evidence

García‐Quevedo, José

doi:10.1111/j.0023-5962.2004.00244.x

Cited by 191 publications

(109 citation statements)

References 33 publications

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“…Among the many findings, some cases have showed complementarity and others substitution between public and private funds. An exhaustive review of the related literature can be found in David, Bronwyn and Toole (2000), García-Quevedo (2004) and Lööf and Hesmati (2005).…”

Section: Public Randd Funding and The Behaviour Perspective: A Review Omentioning

confidence: 99%

“…Most of this work adopts one of three analytic approaches: the influence of policies on R&D input levels (Branstetter and Sakakibara 1998;Almus and Czarnitzki 2003;García-Quevedo 2004), the influence on innovation behaviour (Huggins 2001;Polt and Streicher 2005;OECD 2006) and the influence on the outcome of the innovation process (Branstetter and Sakkibara 1998;Klette and Moen 1999;Huggins 2001;Benfratello and Sembenelli 2002;Bayona-Sáez and García-Marco 2010).…”

Section: Introductionmentioning

confidence: 99%

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Public R&D funding: does the source determine the strategy?

Sáez

Cruz‐Cázares

García‐Marco

2013

Technology Analysis & Strategic Management

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Abstract:The aim of this study is to analyze whether the receipt of public funding for innovation determines for present and future a firm's choice of R&D strategy. We consider three R&D strategies: make R&D in-house, buy R&D and, combined make-buy R&D. The analysis uses a sample of 457 large firms for the period 1992-2005, taken from the Spanish Survey of Business Strategies. Estimation of a multinomial logit model with random effects shows that the positive effect of public funding varies according to the source of the aid, so, while State and Regional funds have a long term effect, other financial aid (such as EU grants) has only short-term effect.The second relevant finding is that the source of the aid also influences whether the firm selects the make, buy or make-buy strategies.

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Section: Public Randd Funding and The Behaviour Perspective: A Review Omentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Public R&D funding: does the source determine the strategy?

Sáez

Cruz‐Cázares

García‐Marco

2013

Technology Analysis & Strategic Management

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“…This literature analyses the impact of policy tools on firms' innovative performance indicators. The empirical evidence (David et al, 2000;García-Quevedo, 2004;Cerulli, 2010;Zúñiga-Vicente et al, 2014) has focused primarily on evaluating the impact of public funding on R&D inputs measured through R&D spending and R&D effort, and on R&D outputs such as patents, sales of new products or the number of new products and processes.…”

Section: Public Subsidies and Randd Employmentmentioning

confidence: 99%

The impact of R&D subsidies on R&D employment composition

Afcha

García‐Quevedo

2014

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In this paper we examine the impact of subsidies granted at national and regional levels on a set of R&D employment variables and we specifically seek to identify the existence of additional effects of these public subsidies on the R&D human resources of firms. We begin by assessing the effects of public funds on private R&D expenditure and on the number of R&D employees, and then focus on the impact of these funds on the composition of human resources engaged in R&D classified by occupation and level of education.The data used are from the Spanish Technological Innovation Panel for the period 2006-2011. To control for selection bias and endogeneity, a combination of non-parametric matching techniques are used. Our results show that R&D subsidies increase the number of R&D employees but no contemporaneous increase is found in the average level of qualification of R&D staff members in subsidized firms. Nevertheless, in the subsequent years there is a positive effect on the recruitment of PhD holders. The effects of public support are heterogeneous and are dependent on the source of the subsidy and the firms' characteristics.Keywords: R&D subsidies, R&D employment, matching estimators, technology policy. JEL Codes: O38, J24, H25, C14. Acknowledgements:We are very grateful for the suggestions from two anonymous referees that were very useful in improving the paper. We would also like to thank D. Czarnitzki, J. G. Díaz-Gamarra, M. Mediavilla and F. Todeschini for valuable comments.2

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“…David, Hall and Toole (2000) survey 32 studies and conclude that "the findings overall are ambivalent". Garcia-Quevedo (2004) conducts a meta-analysis of 74 results from 39 studies, and concludes similarly that "the econometric evidence … is ambiguous". Finally, Bronzini and Iachini (2011) list eleven papers published during the last decade and find that only half of them confirm a positive role for public R&D incentives.…”

Section: Introductionmentioning

confidence: 99%

Estimating the additionality of R&D subsidies using proposal evaluation data to control for research intentions

2014

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Empirical examination of whether R&D subsidies crowd out private investments has been hampered by selection problems. A particular worry is that project quality and research intentions may be correlated with the likelihood of receiving subsidies. Using proposal evaluation data to control for research intentions, we do not find strong evidence suggesting that this type of selection creates a severe bias. Proposal evaluation grades strongly predict R&D investments and reduce selection bias in cross-sectional regressions, but there is limited variation in grades within firms over time. Hence, in our sample, unobserved project quality is largely absorbed by firm fixed effects. Our best estimate of the short-run additionality of R&D subsidies is 1.15, i.e., a one-unit increase in subsidy increases total R&D expenditure in the recipient firm by somewhat more than a unit. We demonstrate, however, that there is measurement error in the subsidy variable. Additionality is therefore likely to be underestimated. JEL CLASSIFICATION: O38, O32, L53, H25, H32

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Do Public Subsidies Complement Business R&D? A Meta‐Analysis of the Econometric Evidence

Cited by 191 publications

References 33 publications

Public R&D funding: does the source determine the strategy?

Public R&D funding: does the source determine the strategy?

The impact of R&D subsidies on R&D employment composition

Estimating the additionality of R&D subsidies using proposal evaluation data to control for research intentions

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