Input and Output Additionality of R&D Subsidies

Dirk Czarnitzki and Katrin Hussinger

DEM Discussion Paper Series from Department of Economics at the University of Luxembourg

Abstract: This paper analyzes 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 investments 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.

Keywords: R&D; Subsidies; Patents; Treatment Effects (search for similar items in EconPapers)
JEL-codes: C14 C30 H23 O31 O38 (search for similar items in EconPapers)
Date: 2017
New Economics Papers: this item is included in nep-cse, nep-eff, nep-eur, nep-ino, nep-ipr, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Related works:
Journal Article: Input and output additionality of R&D subsidies (2018)
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Persistent link: https://EconPapers.repec.org/RePEc:luc:wpaper:17-12

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