Input and output additionality of R&D subsidies

Abstract:© 2017 Informa UK Limited, trading as Taylor & Francis Group. This article analyses the effects of public R&D subsidies on R&D input and output of German firms. We distinguish between the direct impact of subsidies on R&D investment and the indirect effect on innovation output measured by patent applications. We disentangle the productivity of purely privately financed R&D and additional R&D investment induced by the public incentive scheme. For this, a treatment-effect analysis is conducted in a first step. The results are implemented into the estimation of a patent production function in a second step. It turns out that both purely privately financed R&D and publicly induced R&D show a positive effect on patent outcome.

Publication year:2018

Keywords:business, economics, planning

BOF-keylabel:yes

IOF-keylabel:yes

BOF-publication weight:0.5

CSS-citation score:2

Authors:International

Authors from:Higher Education

Review status:Peer-reviewed