Input and output additionality of R&D subsidies

Dirk Czarnitzki and Katrin Hussinger

Applied Economics, 2018, vol. 50, issue 12, 1324-1341

Abstract: This article analyses 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 investment 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.

Date: 2018
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Citations: View citations in EconPapers (28)

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Working Paper: Input and Output Additionality of R&D Subsidies (2017)
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DOI: 10.1080/00036846.2017.1361010

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