Assessing the effect of public subsidies on firm R&D investment: a survey

José I. Galán-Zazo, Francisco Forcadell and José Ángel Zúñiga-Vicente
Authors registered in the RePEc Author Service: César Alonso-Borrego

UC3M Working papers. Economics from Universidad Carlos III de Madrid. Departamento de Economía

Abstract: This survey examines the empirical literature on the relationship between public R&D subsidies and private R&D investment over the past five decades. The survey reveals a considerable heterogeneity of empirical results that cannot be explained fully by methodological issues. We aim to provide further explanations of the possible causes of that heterogeneity. In particular, we emphasise a set of issues that, in our view, are critical to understanding the potential effect of public R&D subsidies on private R&D spending. Special attention is paid to the dynamic aspects and composition of firm R&D, the constraints faced by the firm (such as financial constraints), and the amount and source of public subsidies. None of these issues have been investigated in depth. We formulate a set of research assumptions to guide future empirical research in this field.

Keywords: Public; subsidies; R&D; investment; Innovation (search for similar items in EconPapers)
JEL-codes: H54 L22 L52 O31 O38 (search for similar items in EconPapers)
Date: 2012-04
New Economics Papers: this item is included in nep-ino and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (90)

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Journal Article: ASSESSING THE EFFECT OF PUBLIC SUBSIDIES ON FIRM R&D INVESTMENT: A SURVEY (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:cte:werepe:we1215

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