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The legacy of public subsidies for innovation: input, output and behavioural additionality effects

Stephen Roper and Nola Hewitt-Dundas ()
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Nola Hewitt-Dundas: Queen's University Belfast

No 21, Research Papers from Enterprise Research Centre

Abstract: In many countries significant amounts of public funding are devoted to supporting firms’ R&D and innovation projects. Here, using panel data on the innovation activities of Irish manufacturing firms we examine the legacy effects of public subsidies for new product development and R&D. We examine five alternative mechanisms through which such effects may occur: input additionality, output additionality, and congenital, inter-organisational and experiential behavioural additionality. Tests suggest contrasting legacy effects with R&D subsidies generating legacy output additionality effects while new product development subsidies have legacy congenital and inter-organisational behavioural additionality effects. Our results have implications for innovation policy design and evaluation.

Keywords: innovation policy; additionality; evaluation; Ireland (search for similar items in EconPapers)
JEL-codes: O32 L1 O38 Q34 L26 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com, nep-cse, nep-ino, nep-ppm, nep-sbm and nep-tid
Date: 2014-07-01
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Persistent link: https://EconPapers.repec.org/RePEc:enr:rpaper:0021

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