The Impact of R&D Subsidy on Innovation: a Study of New Zealand Firms

Adam Jaffe and Trinh Le

No 21479, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper examines the impact of government assistance through R&D grants on innovation output for firms in New Zealand. Using a large database that links administrative and tax data with survey data, we are able to control for large number of firm characteristics and thus minimise selection bias. We find that receipt of an R&D grant significantly increases the probability that a firm in the manufacturing and service sectors applies for a patent during 2005–2009, but no positive impact is found on the probability of applying for a trademark. Using only firms that participated in the Business Operation Survey, we find that receiving a grant almost doubles the probability that a firm introduces new goods and services to the world while its effects on process innovation and any product innovation are relatively much weaker. Moreover, there is little evidence that grant receipt has differential effects between small to medium (

JEL-codes: O31 O34 O38 (search for similar items in EconPapers)
Date: 2015-08
New Economics Papers: this item is included in nep-cse, nep-ent, nep-ger, nep-ino, nep-ipr, nep-pr~, nep-sbm and nep-tid
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Citations: View citations in EconPapers (28)

Published as Trinh Le & Adam B. Jaffe (2016) The impact of R&D subsidy on innovation: evidence from New Zealand firms, Economics of Innovation and New Technology, 26:5, 429-452, DOI: 10.1080/10438599.2016.1213504

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Working Paper: The impact of R&D subsidy on innovation: a study of New Zealand firms (2015)
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