The economics of subsidies for R&D: Implications for reform of EU state aid rules

Phedon Nicolaides

Intereconomics: Review of European Economic Policy, 2013, vol. 48, issue 2, 99-105

Abstract: The primary aim of the reform of EU rules on research, development and innovation for the period 2014–20 is to ensure that aid stimulates more research and that it is kept to the minimum necessary. This paper develops a simple model that identifies a number of problems in the public funding of private research and demonstrates that the determination of the optimum subsidy for research is a complex task. The results suggest that research subsidies should be allocated in a way that reduces the amount of subsidy per recipient firm and ensures that the subsidies go to more efficient firms. Copyright ZBW and Springer-Verlag Berlin Heidelberg 2013

Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://hdl.handle.net/10.1007/s10272-013-0450-2 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:spr:intere:v:48:y:2013:i:2:p:99-105

Ordering information: This journal article can be ordered from
http://link.springer.de/orders.htm

DOI: 10.1007/s10272-013-0450-2

Access Statistics for this article

Intereconomics: Review of European Economic Policy is currently edited by Christian Breuer

More articles in Intereconomics: Review of European Economic Policy from Springer, ZBW - Leibniz Information Centre for Economics, Centre for European Policy Studies (CEPS)
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().