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

Dirk Czarnitzki and Julie Delanote

No 16-045, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

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)
JEL-codes: C14 C30 O38 (search for similar items in EconPapers)
Date: 2016
New Economics Papers: this item is included in nep-com, nep-cse, nep-eur, nep-ino, nep-sbm and nep-tid
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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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:zbw:zewdip:16045

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