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The Link Between R&D Subsidies, R&D Spending and Technological Performance

Dirk Czarnitzki and Katrin Hussinger

No 04-56, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: This paper analyzes the effects of public R&D funding on R&D expenditure and patenting behavior of German firms. The main focus is the direct impact of subsidies on R&D and the indirect effect on innovation output measured by patent applications. We distinguish the productivity of purely privately financed R&D and additional R&D induced by public incentive schemes. For this, a treatment effects analysis is conducted in a first step. The results are implemented into the estimation of a patent production function. It turns out that both purely privately financed R&D and publicly induced R&D show a positive productivity.

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: 2004
References: Add references at CitEc
Citations: View citations in EconPapers (104)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:2194

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