 An Empirical Analysis of Factors Explaining the Level of R&D Subsidies and their Productivity Effects. Evidence from Firm-Level Panel Datain WIFO Studies from WIFO Abstract: The Industrial Research Promotion Fund (Forschungsförderungsfonds – FFF) is Austria's most important source of finance funding R&D projects carried out by business enterprises. However, the decision on the level of R&D subsidies will be affected by both the funding agency's objectives and firm characteristics. The paper analyses the factors explaining the intensity of R&D subsidies as well as their productivity effects. The analysis is based on unique panel data for about 1,000 Austrian firms receiving R&D subsidies for the period 1996-2002. The results of the panel data analysis suggest that the ratio of R&D subsidies to total R&D expenditures is significantly negatively related to both firm size and the current R&D intensity, but not to the cash-flow ratio in the past. Furthermore, we find that newly founded enterprises as well as firms in the electrical machinery and software industry have a significantly higher ratio of R&D subsidies to total R&D. In contrast, fast output growth in the past is associated with a lower R&D subsidy ratio. Overall, the results are consistent with the fund's strategy. Keywords: R&D Subsidies; Management of thchnological innovation and R&D; Government Policy; Productivity (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:wfo:wstudy:25317 Access Statistics for this book More books in WIFO Studies from WIFO Contact information at EDIRC. |
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