The Effect of R&D Subsidies on Private R&D: Evidence from Italian Manufacturing Data

Oliviero Carboni

Working Paper CRENoS from Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia

Abstract: This paper uses a comprehensive firm level data set for the manufacturing sector in Italy to investigate the effect of government support on privately financed R&D expenditure. Estimates from a two-step equation model suggest that public assistance has a positive effect on private R&D investment. A non parametric matching procedure is also used to investigate the same effect. Here again the results suggest that the recipient firms achieve more private R&D than they would have without public support. The paper also examines whether public funding effects the financial sources available for R&D and finds that grants encourage credit financing for R&D. The effects on the use of internal sources are not conclusive.

Keywords: applied econometrics; matching; public subsidies; r&d investment (search for similar items in EconPapers)
JEL-codes: C24 L10 O30 O31 O38 O40 (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-ino, nep-ipr, nep-pr~, nep-knm, nep-mic and nep-ppm
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Citations: View citations in EconPapers (2)

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https://crenos.unica.it/crenos/sites/default/files/wp/08-15_1_.pdf (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:cns:cnscwp:200815

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