Incorporating innovation subsidies in the CDM framework: Empirical evidence from Belgium

Dirk Czarnitzki and Julie Delanote

No 543966, Working Papers of Department of Management, Strategy and Innovation, Leuven from KU Leuven, Faculty of Economics and Business (FEB), Department of Management, Strategy and Innovation, Leuven

Abstract: This paper integrates innovation input and output effects of R&D subsidies into a modified Crépon–Duguet–Mairesse (CDM) model. Our results largely confirm insights of the input additionality literature, i.e. public subsidies complement private R&D investment. In addition, results point to positive output effects of both purely privately funded and subsidy–induced R&D. Furthermore, we do not find evidence of a premium or discount of subsidy–induced R&D in terms of its marginal contribution on new product sales when compared to purely privately financed R&D.

Keywords: CDM model; R&D; subsidies; innovation policy (search for similar items in EconPapers)
Date: 2016-06
New Economics Papers: this item is included in nep-cse, nep-eur, nep-ino, nep-net, nep-sbm and nep-tid
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Published in FEB Research Report - MSI_1607

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https://lirias.kuleuven.be/retrieve/392391 MSI_1607 (application/pdf)

Related works:
Journal Article: Incorporating innovation subsidies in the CDM framework: empirical evidence from Belgium (2017)
Working Paper: Incorporating innovation subsidies in the CDM framework: Empirical evidence from Belgium (2016)
Working Paper: Incorporating innovation subsidies in the CDM framework: Empirical evidence from Belgium (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:ete:msiper:543966

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