The Effects of Public R&D Subsidies on Firms' Innovation Activities: The Case of Eastern Germany

Matthias Almus and Dirk Czarnitzki

Journal of Business & Economic Statistics, 2003, vol. 21, issue 2, 226-36

Abstract: This study analyzes the effects of public R&D policy schemes on the innovation activities of firms in Eastern Germany. The main question in this context is whether public funds stimulate R&D activities or simply crowd out privately financed R&D. Empirically, we investigate the average causal effects of all public R&D schemes in Eastern Germany using a nonparametric matching approach. Compared to the case in which no public financial means are provided, it turns out that firms increase their innovation activities by about four percentage points.

Date: 2003
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Working Paper: The effects of public R&D subsidies on firms' innovation activities: the case of Eastern Germany (2001)
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Persistent link: https://EconPapers.repec.org/RePEc:bes:jnlbes:v:21:y:2003:i:2:p:226-36

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