R&D and subsidies at the firm level: an application of parametric and semiparametric two-step selection models

Katrin Hussinger

Journal of Applied Econometrics, 2008, vol. 23, issue 6, 729-747

Abstract: This paper analyzes the effect of public R&D subsidies on firms' private R&D investment per employee and new product sales in German manufacturing. Parametric and semiparametric two-step selection models are applied to this evaluation problem. The results show that the average treatment effect on the treated firms' R&D intensity is positive. The estimated effects are robust with respect to the different selection models. Further results show that publicly induced R&D spending is as productive as private R&D investment in generating new product sales. Copyright © 2008 John Wiley & Sons, Ltd.

Date: 2008
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Related works:
Working Paper: R&D and Subsidies at the Firm Level: An Application of Parametric and Semi-Parametric Two-Step Selection Models (2004)
Working Paper: R&D and Subsidies at the Firm Level: An Application of Parametric and Semi-Parametric Two-Step Selection Models (2003)
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DOI: 10.1002/jae.1016

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