Two for the price of one?: Additionality effects of R&D subsidies: A comparison between Flanders and Germany

Kris Aerts and Tobias Schmidt

Research Policy, 2008, vol. 37, issue 5, 806-822

Abstract: We empirically test whether public R&D subsidies crowd out private R&D investment in Flanders and Germany, using firm level data from the Flemish and German part of the Community Innovation Surveys (CIS III and IV). Both the non-parametric matching estimator and the conditional difference-in-differences estimator with repeated cross-sections (CDiDRCS) clearly indicate that the crowding-out hypothesis can be rejected: funded firms are significantly more R&D active than non-funded firms. In the domain of additionality effects of R&D subsidies, this paper is the first to apply the CDiDRCS method.

Date: 2008
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Citations: View citations in EconPapers (170)

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Working Paper: Two for the price of one? On additionality effects of R&D subsidies: A comparison between Flanders and Germany (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:37:y:2008:i:5:p:806-822

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