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R&D SUBSIDIES AND FIRM-LEVEL PRODUCTIVITY: EVIDENCE FROM FRANCE

Aminata Sissoko

No 2011002, Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: This paper attempts to provide a new insight into the relationship between R&D subsidies and firm-level productivity. The empirical analysis evaluates the productivity of firms involved in a European program of public R&D grants called Eureka. The findings suggest that the Eureka firms on average experience productivity gains towards the end of the 3-years grant period. However, the average increase in productivity hides substantial firm heterogeneity. Namely it hides that low productive firms gain more from an R&D subsidy than high productive firms. The empirical analysis is conducted by using propensity score matching and a difference-in-differences estimation method to control for potential endogeneity issues.

Keywords: R&D subsidies; Collaborative Research; Total Factors Productivity and Firm Heterogeneity (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eff, nep-eur, nep-ino and nep-sbm
Date: 2011-01-28, Revised 2013-10-24
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Persistent link: https://EconPapers.repec.org/RePEc:ctl:louvir:2011002

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