EconPapers    
Economics at your fingertips  
 

Barriers to Innovation and Subsidy Effectiveness

Xulia González (), Jordi Jaumandreu () and Consuelo Pazó ()

RAND Journal of Economics, 2005, vol. 36, issue 4, 930-949

Abstract: We explore the effects of subsidies by means of a model of firmsï¿• decisions about performing R&D when some government support can be expected. We estimate it with data on about 2,000 performing and nonperforming Spanish manufacturing firms. We compute the subsidies required to induce R&D spending,we detect the firms that would cease to perform R&D without subsidies, and assess the change in the privately financed effort. Results suggest that subsidies stimulate R&D and some firms would stop performing in their absence,b ut most actual subsidies go to firms that would have performed R&D otherwise. We find no crowding out of private funds.

Date: 2005
References: Add references at CitEc
Citations: View citations in EconPapers (205) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Barriers to innovation and subsidy e¤ectiveness (2001) Downloads
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:rje:randje:v:36:y:2005:4:p:930-949

Ordering information: This journal article can be ordered from
https://editorialexp ... i-bin/rje_online.cgi

Access Statistics for this article

More articles in RAND Journal of Economics from The RAND Corporation
Bibliographic data for series maintained by ().

 
Page updated 2022-01-12
Handle: RePEc:rje:randje:v:36:y:2005:4:p:930-949