Do public subsidies stimulate private R&amp;D spending?

González, Xulia; Pazó, Consuelo

doi:10.1016/j.respol.2007.10.009

Cited by 413 publications

(235 citation statements)

References 22 publications

Supporting

Mentioning

189

Contrasting

Unclassified

Order By: Relevance

“…In line with previous studies for Spain (Busom, 2000;González and Pazó, 2008;González et al, 2005;Herrera and Heijs, 2007), these results reveal the existence of financial additionality in private R&D expenditures. The estimations also show that public subsidies have a positive and significant effect on the number of R&D employees.…”

Section: Impact Of Randd Subsidiessupporting

confidence: 92%

“…Propensity score matching (PSM), as a matching method for the estimation of the average treatment effect on the treated (ATT), has been used extensively in empirical studies of the effects of R&D subsidies (see, among others, Aerts and Schmidt;Almus and Czarnitzki, 2003;Carboni, 2011;Czarnitzki and Licht, 2006;Czarnitzki and Lopes Bento, 2013;Duch et al 2009;Duguet, 2004;González and Pazó, 2008;Herrera and Nieto, 2008).…”

Section: Methodsmentioning

confidence: 99%

“…The wealth of information provided by the PITEC allows an exhaustive set of variables to be selected and similar controls to be included as those used in previous evaluation studies (see, among others, Aerts and Schmidt, 2008;Almus and Czarnitzki, 2003;Antonelli and Crespi, 2013;Czarnitzki and Lopes-Bento, 2013;Czarnitzki and LopesBento, 2014;González and Pazó, 2008;Hussinger, 2008).…”

Section: Methodsmentioning

confidence: 99%

“…Taking advantage of the panel data structure, we include a lagged variable to control for persistence in obtaining subsidies, as has been done in other papers that use the same methodology (Czarnitzki and Lopes-Bento, 2013;Duguet, 2004;González and Pazó, 2008). In addition, receiving subsidies from other agencies -regional, national or European -may also have influence on obtaining subsidies from a specific government level.…”

Section: Methodsmentioning

confidence: 99%

“…This heterogeneity suggests that a firm's reaction to public intervention may be conditioned by specific characteristics that influence the innovation process. Several papers analyse the impact of R&D subsidies on firms according to their size (Falk, 2007;González and Pazó, 2008;Lach, 2002;Ösçelik and Taymaz, 2008). In this paper, the possible existence of differences attributable to firm size is also analysed.…”

Section: Impact Of Randd Subsidiesmentioning

confidence: 99%

See 4 more Smart Citations

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

Afcha

García‐Quevedo

2014

View full text Add to dashboard Cite

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

show abstract

Section: Impact Of Randd Subsidiessupporting

confidence: 92%

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Impact Of Randd Subsidiesmentioning

confidence: 99%

See 3 more Smart Citations

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

Afcha

García‐Quevedo

2014

View full text Add to dashboard Cite

show abstract

Are fiscal policy incentives effective in stimulating firms' eco‐product innovation? The moderating role of dynamic capabilities

Long

Liao

2021

Bus Strat Env

View full text Add to dashboard Cite

This study investigates the effectiveness of fiscal policy incentives—in particular, direct subsidies and tax credits—in stimulating eco‐product innovation among Chinese manufacturing firms. We also examine the moderating effects of dynamic capabilities. The empirical results, which are based on survey data from 265 firms in China, demonstrate that both direct subsidies and tax credits are conducive to firms' eco‐product innovation. In addition, we find that when firms' dynamic integration capabilities are strong, the facilitating effects of direct subsidies and tax credits on eco‐product innovation are likewise strong. Moreover, dynamic reconfiguration capabilities positively moderate the relationship between tax credits and eco‐product innovation. By identifying moderators that influence the effect of fiscal incentives on eco‐product innovation in heterogeneous firms, this study contributes to fiscal policy debates and realizing sustainable development.

show abstract

The effect of output additionality of public funding support on firm innovation. Evidence from firms of different sizes

et al. 2023

View full text Add to dashboard Cite

The article aims to study the effect of output additionality of public innovation funding on firm innovation, measured as economic returns of innovation, across firms of different sizes. A panel sample consisting of 4125 Spanish firms observed during years 2009–2014 has been analysed, using a treatment model. Robustness tests have also been used. The findings show the effects of output additionality of innovation funding support for small, medium and large firms, with a greater effect on large firms and a lower effect on medium firms. However, there has a weak effect for very large firms, which do not benefit in terms of output additionality. Since it is relatively easy for large firms to benefit from public support for innovation, some of the resources allocated to them should be passed on to small and medium firms. Medium firms seem to be less inclined to benefit from economies of scales than large firms and may be less affected by public innovation policy given the priority for small firms' development. Small and medium enterprises can benefit further from well‐designed targeting programmes, with a prevalence of demand‐side support measures compared to the supply‐side measures.

show abstract

Do public subsidies stimulate private R&D spending?

Cited by 413 publications

References 22 publications

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

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

Are fiscal policy incentives effective in stimulating firms' eco‐product innovation? The moderating role of dynamic capabilities

The effect of output additionality of public funding support on firm innovation. Evidence from firms of different sizes

Contact Info

Product

Resources

About