The Impact of R&amp;D Subsidies on Firm Innovation

Bronzini, Raffaello; Piselli, Paolo

doi:10.2139/ssrn.2464525

Cited by 67 publications

(38 citation statements)

References 138 publications

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“…Government grants are associated with significantly higher levels of innovation inputs (R&D spend), outputs (patents), and higher quality outputs (patent citations). The results on the impact of grants on innovation outcomes (patents) are consistent with international evidence (Branstetter and Sakakibara, 2002;Bronzini and Piselli, 2016;Jaffe and Le, 2015).…”

Section: The Influence Of Government Grants Vc Funding and Pe Fundisupporting

confidence: 81%

“…Furthermore, the influence of government grants on innovation has received limited attention (Branstetter and Sakakibara (2002), Bronzini and Piselli (2016), Clausen (2009), David et al (2000), and Jaffe and Le (2015) focus on innovation outcomes). Since firms can access grants, VC, and PE funding, at various stages of their development, and grant funding may indeed encourage subsequent VC or PE funding, this leaves us with incomplete knowledge of whether and why government grants might encourage subsequent VC or PE funding and whether and why grants might supplement or complement VC and PE funding with regard to innovation.…”

Section: Introductionmentioning

confidence: 99%

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Innovation in newly public firms: The influence of government grants, venture capital, and private equity

Shinkle

Suchard

2018

Australian Journal of Management

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We investigate the influence of government grants, venture capital (VC), and private equity (PE) funding on innovation in newly public firms. We examine innovation inputs (R&D), innovation outputs (patents), and the quality thereof (patent citations). We contribute to understanding of the mechanisms between government grants and subsequent VC and PE funding and innovation. We find that grants encourage VC funding but not PE funding. Grants and VC/PE funding are generally complements regarding innovation except grants substitute for VC funding on innovation inputs. Furthermore, we observe that the firm-level heterogeneity of VC/PEs significantly influences innovation in portfolio companies.

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Section: The Influence Of Government Grants Vc Funding and Pe Fundisupporting

confidence: 81%

Section: Introductionmentioning

confidence: 99%

Innovation in newly public firms: The influence of government grants, venture capital, and private equity

Shinkle

Suchard

2018

Australian Journal of Management

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“…This approach assumes that irregular activities use cash as payment, as it is less traceable. The authors apply this approach to the Spanish regions and obtain the estimations, which are summarized in Figure 2 (see also Bronzini and Paolo Piselli, 2016). We use the annual growth of patents over the previous period in each of the Spanish regions.…”

Section: Figure 2 Shadow Economy By Spanish Regionmentioning

confidence: 99%

“…The final result of innovation is difficult to quantify. However, patents adequately reflect innovation (Zoltan J. Acs, Luc Anselin and AttilaVarga, 2005) and are therefore frequently used in the literature to approximate the innovative effort(Mikel Buesa, Joost Heijs and Thomas Baumert 2010; Victoria Kravtsova and Slavo Radosevic, 2012;Eleanor Doyle and Fergal O'Connor, 2013;Raffaello…”

mentioning

confidence: 99%

Corruption, the shadow economy and innovation in Spanish regions

2020

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The aim of this paper is to analyze the effects of corruption and the shadow economy on innovation in the Spanish regions between 2000 and 2012. For this purpose, we use different proxies to approximate corruption and the shadow economy. We find evidence that corruption negatively influences innovation according to the results of the estimations. Regarding the effect of the shadow economy on innovation, the results also suggest that tax fraud, which is directly related to underground activities, leads to a decrease in regional innovation.

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“…ere is a great deal of research on the relationship of government subsidies and enterprises' innovation investment. eoretically, government subsidies on the one hand can directly increase enterprises' R&D funds and on the other hand can enhance the confidence of the enterprises' innovation and promote the increase of corporate R&D investment [19][20][21]. Busom [22], Lee and Hwang [23], Hud and Hussinger [24], Radas et al [9], and Hottenrott and Lopes-Bento [11] considered that government subsidies are positively correlated with enterprises' R&D investment.…”

Section: Effects Of Government Subsidies On Enterprises'mentioning

confidence: 99%

The Evolution of Collective Strategies in SMEs’ Innovation: A Tripartite Game Analysis and Application

2019

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Financing difficulty is recognized as the main bottleneck in the technology innovation process of small- and medium-sized enterprises (SMEs). The governments generally provide financial support for SMEs’ innovation activities. Numerous research studies have been conducted on the role of the government in enterprises’ innovation, while there is no consistent conclusion on whether government subsidies can improve stakeholder collaboration and effectively ease financing constraints of SMEs’ innovation. Due to information asymmetry and the bounded rationality, the dynamic game among the government, external investors, and SMEs has the characteristics of complexity. This paper aims to explore the collective strategies of the major stakeholders in SMEs’ innovation and investigate the effect of antecedents on innovation activities. We establish a trilateral evolutionary game model on the relationship among the government, external investors, and SMEs. The simulation results show that the evolutionary system converges quickly to the equilibrium; when the government subsidies decrease, the external investors’ appraisal costs decrease and the investment amount and return rates of external investors increase. Furthermore, under the condition of government subsidies, external investors will not change their investment strategies even if the external investors’ recognition costs have exceeded their return on SMEs’ investment. The findings can provide good reference for the government to solve the financing problem of SMEs’ innovation.

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The Impact of R&D Subsidies on Firm Innovation

Cited by 67 publications

References 138 publications

Innovation in newly public firms: The influence of government grants, venture capital, and private equity

Innovation in newly public firms: The influence of government grants, venture capital, and private equity

Corruption, the shadow economy and innovation in Spanish regions

The Evolution of Collective Strategies in SMEs’ Innovation: A Tripartite Game Analysis and Application

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