Input and output additionality of R&D subsidies |
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Authors: | Dirk Czarnitzki |
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Institution: | 1. Department of Managerial Economics, Strategy and Innovation, KU Leuven, Leuven, Belgium;2. Center for R&3. D Monitoring (ECOOM), KU Leuven, Leuven, Belgium;4. Centre for European Economic Research (ZEW), Mannheim, Germany |
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Abstract: | 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. |
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Keywords: | R& D subsidies patents treatment effects |
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