 Public R&D Subsidies and Productivity: Evidence from Firm-Level Data in QuebecNo 2010-055, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) Abstract: This paper analyses empirically the impacts of public R&D grants on private R&D investments and on the productivity growth of the manufacturing firms in a context where fiscal incentives are present. Using the conditional semiparametric differenceindifferences estimator on longitudinal data from Quebec we show that firms that use public grants for R&D in conjunction with tax credits for R&D perform better in terms of R&D input additionality than firms that use only tax credits for R&D. We then use a production function to assess the effectiveness of public R&D grants in the productivity growth of firms. We find that for each additional dollar of public R&D grant, output increases by 0.134 dollars. We conclude that the additional return of direct subsidies is positive but lower than the return on the R&D financed by own funds or R&D tax credits. Keywords: R&D; Public subsidies; Quebec; Productivity; Difference-in-differences (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2010055 Access Statistics for this paper More papers in MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT) Contact information at EDIRC. |
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