MATTHEW EFFECTS AND R&D SUBSIDIES: KNOWLEDGE CUMULABILITY IN HIGH-TECH AND LOW-TECH INDUSTRIES
Cristiano Antonelli and
Francesco Crespi
Giornale degli Economisti, 2012, vol. 71, issue 1, 5-31
Abstract:
The paper explores the causes and effects of persistence in the discretionary allocation of public subsidies to R&D activities performed by private firms in high-tech and low-tech industries. It applies the distinction between vicious Matthew-effect and virtuous Matthew-effect. The former qualifies the persistence in the discretionary allocation of public subsidies in terms of sheer reputation based upon previous awards. The latter is identified by the role of the accumulation of competence stemming from past grants in current R&D activities. Virtuous Matthew effects are found in high-tech industries where knowledge cumulability is higher. In traditional industries, vicious Matthew effects prevail for the lower levels of knowledge cumulability. Here reputation-Matthew-effects can lead to substitution of private funds with public ones.
Keywords: INNOVATION; R&D SUBSIDIES; MATTHEW EFFECTS; PAST DEPENDENCE; PATH DEPENDENCE (search for similar items in EconPapers)
JEL-codes: H25 H32 L52 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (5)
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
Working Paper: Matthew effects and R&D subsidies: knowledge cumulability in high-tech and low-tech industries (2011) 
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:gde:journl:gde_v71_n1_p5-31
Ordering information: This journal article can be ordered from
http://www.gde.unibocconi.it
Access Statistics for this article
More articles in Giornale degli Economisti from GDE (Giornale degli Economisti e Annali di Economia), Bocconi University via Sarfatti, 25 - 20136 Milano (Italy).
Bibliographic data for series maintained by Erika Somma ( this e-mail address is bad, please contact ).