The impact of R&amp;D subsidies on firm innovation

Bronzini, Raffaello; Piselli, Paolo

doi:10.1016/j.respol.2015.10.008

Cited by 557 publications

(214 citation statements)

References 48 publications

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“…Finally, the more general consolidated evidence is that evaluating the impact of R&D loans, subsidies and grants is extremely complex, even when individual programmes are relatively simple in terms of policy design and implementation. Only a limited number of impact evaluation studies can directly trace the full range of policy effects; none can attribute these effects to specific features of the corresponding programme (on the case of Italy, see Bertamino, Bronzini, De Maggio, & Revelli, 2016;Bondonio & Greenbaum, 2012;Bronzini & Piselli, 2016;Corsino, Gabriele, & Giunta, 2015;Fantino & Cannone, 2013;and Merito, Giannangeli, & Bonaccorsi, 2010).…”

Section: Implementation Of the Smart Specialisation Strategy (S3): Kementioning

confidence: 99%

Cohesion Policy incentives for collaborative industrial research: evaluation of a Smart Specialisation forerunner programme

2018

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This paper evaluates a programme of subsidies for collaborative industrial research (co-)funded by the European Union's Cohesion Policy in Italy mobilizing over €1 billion. In the 2007-13 funding cycle, the programme was a precursor to some of the key features of Smart Specialisation Strategy (S3) programmes, offering evidence-based insights into potential challenges of the practical application of the S3 approach. The programme was unsuccessful in boosting investments, value added or employment of beneficiary firms. The collaborative dimension of the projects added limited value and a more generous funding level would not have improved effectiveness. However, positive impacts emerged in low-tech sectors.

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Section: Implementation Of the Smart Specialisation Strategy (S3): Kementioning

confidence: 99%

Cohesion Policy incentives for collaborative industrial research: evaluation of a Smart Specialisation forerunner programme

2018

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“…Zuniga-Vicente et al (2014) and Becker (2015) survey this broader literature, with a discussion of the comparisons between the benefits of direct subsidies and tax incentives. There is some evidence in the literature that young start ups, which are very important for the innovation ecosystem of countries, benefit more from direct subsidies as they incur losses for extended periods of time before switching to profitable positions (Bronzini and Piselli 2016). For these firms, tax deductions or credits have very little value in present discounted terms, especially if they are cash constrained.…”

Section: Introductionmentioning

confidence: 99%

Will the real R&D employees please stand up? Effects of tax breaks on firm-level outcomes

Guceri

2017

Int Tax Public Finance

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This paper evaluates the effect of tax incentives for research and development (R&D) on R&D spending and employment of R&D staff in a quasi-experimental setting. To do this, I exploit an exogenous reform in UK R&D tax policy, which changed the definition of an SME from firms with fewer than 250 employees to those with fewer than 500 employees. I use the UK Business Enterprise Research and Development Survey (BERD), for which companies do not have an incentive to relabel their ordinary employees or spending as R&D. I find that R&D tax incentives help to increase R&D spending at the company level; this translates to a user cost elasticity between −0.88 and −1.18. Further, the additional R&D generated through the tax relief can be attributed entirely to an increase in the number of R&D employees in the companies' workforce. Together, these results challenge a common narrative on the role of R&D tax incentives.

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“…In academia, the ex-post evaluation of the impact of, for example, R&D public policies on various outcome variables has long been attracting a substantial amount of research focusing on both various national levels and crosscountry comparisons (see, e.g., Bronzini and Piselli, 2016, Czarnitzki and Lopes-Bento, 2012, 2013, Dimos and Pugh, 2016, as well as Zúñiga-Vicente et al, 2012, and the respective literature cited there). In practice, the European Commission itself commissioned studies evaluating the impact of its R&D aid (see CERES, 2005) or its regional aid (see Ramboll & Matrix, 2013) Limiting ourselves to a review of the former set of articles, in an early contribution, Glowicka (2006) studies the effectiveness of bailouts in preventing bankruptcy.…”

Section: Literature Reviewmentioning

confidence: 99%

The Impact of State Aid on the Survival and Financial Viability of Aided Firms

et al. 2016

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. Keywords Government policy, state aid, ex-post evaluation, survival, European Union JEL Class C41, D62, D73, G33, G38, H23, L52, L98, O52 * The paper is based on a study with the title "Ex-post evaluation of the impact of restructuring aid decisions on the viability of aided (non-financial) firms" produced within a framework contract with the European Union by a consortium consisting of WIFO (Vienna), ECORYS (Rotterdam), Idea Consult (Brussels), SPI (Coimbra) and ZEW (Mannheim). The opinions expressed are ours only and do not represent the European Commission's official position. The European Commission has the rights to the results of the study which can be downloaded here: http://ec.europa.eu/competition/ publications/reports/kd0116104enn.pdf. We are grateful to the entire project team and the European Commission for helpful discussions in the course of the project. We are further indebted to Wolfgang Briglauer, Dirk Czarnitzki, Martin Hud, Ulrich Laitenberger, Eva Pichler, Christian Rammer, Michael Schröder and Douglas Thompson for helpful remarks on earlier versions of the paper. †

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The impact of R&D subsidies on firm innovation

Cited by 557 publications

References 48 publications

Cohesion Policy incentives for collaborative industrial research: evaluation of a Smart Specialisation forerunner programme

Cohesion Policy incentives for collaborative industrial research: evaluation of a Smart Specialisation forerunner programme

Will the real R&D employees please stand up? Effects of tax breaks on firm-level outcomes

The Impact of State Aid on the Survival and Financial Viability of Aided Firms

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