Public R&D subsidies, outside private support, and employment growth
Albert Link and
John Scott
Economics of Innovation and New Technology, 2013, vol. 22, issue 6, 537-550
Abstract:
In the aftermath of the passage of the American Recovery and Reinvestment Act of 2009, the employment effects of public subsidies have been scrutinized because of new emphasis on public accountability and transparency. In this paper, we investigate conditions in which public subsidies of research and development (R&D) in small firms stimulate employment growth. We find, based on an empirical analysis of employment growth induced by US Department of Defense Small Business Innovation Research program awards, that the stimulated employment growth is greater under two conditions: one, the presence of outside investors providing additional funding for the R&D and, two, when an exceptional amount of intellectual property is created by the publicly subsidized R&D. In addition to outside investors, other firms that make commercial agreements with the subsidized firm appear important for the employment growth of the subsidized firm. Cooperation between the small business doing the R&D and other firms is an important determinant of the commercial success of the technologies created with the support of public funds.
Date: 2013
References: Add references at CitEc
Citations: View citations in EconPapers (23)
Downloads: (external link)
http://hdl.handle.net/10.1080/10438599.2013.776744 (text/html)
Access to full text is restricted to subscribers.
Related works:
Working Paper: Public R&D Subsidies, Outside Private Support, and Employment Growth (2013) 
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:taf:ecinnt:v:22:y:2013:i:6:p:537-550
Ordering information: This journal article can be ordered from
http://www.tandfonline.com/pricing/journal/GEIN20
DOI: 10.1080/10438599.2013.776744
Access Statistics for this article
Economics of Innovation and New Technology is currently edited by Professor Cristiano Antonelli
More articles in Economics of Innovation and New Technology from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().