Publication:
Barriers to innovation and subsidy effectiveness

Thumbnail Image
Identifiers
URI: http://hdl.handle.net/10016/5202
ISSN: 1756-2171
Files
Barriers_RANDJE_2005_36_4.pdf (785.65 KB)
Publication date
2005
Defense date
Authors
Advisors
Tutors
Journal Title
Journal ISSN
Volume Title
Publisher
RAND Corporation
Impact
Google Scholar
Export
Research Projects
Organizational Units
Journal Issue
Abstract
We explore the effects of subsidies by means of a model of firms' decisions about performing R&D when some government support can be expected. We estimate it with data on about 2,000 performinga nd nonperformingS panishm anufacturingfi rms. Wec omputet he subsidies required to induce R&D spending, we detect the firms that would cease to perform R&D without subsidies, and assess the change in the privately financed effort. Results suggest that subsidies stimulate R&D and some firms would stop performing in their absence, but most actual subsidies go to firms that would have performed R&D otherwise. We find no crowding out of private funds.
Description
Keywords
Bibliographic citation
Rand Journal of Economics. 2005, vol. 36, nº 4, p. 930-950
Collections
DE - Artículos de Revistas
Economists Online