The impact of R&D subsidies under different institutional frameworks
Stefano Bianchini (),
Patrick Llerena and
Roberto Martino
Additional contact information
Stefano Bianchini: BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique
Post-Print from HAL
Abstract:
This paper assesses the impact of public R&D subsidies on business R&D investment in heterogeneous institutional frameworks. Public support for research and innovation activities may leverage private resources when firms are constrained by lower quality public institutions, reducing uncertainty and favouring private risky investments. We develop an institutional index based on existing indicators and group regional economies on the basis of the quality of their public institutions. We use a comprehensive sample of Spanish firms observed over more than 20 years and a larger dataset of 13 European economies drawn from the Community Innovation Survey 2014 to test the policy impact in terms of private R&D expenditure for companies operating in different institutional frameworks. Our findings reject full crowding-out and show that beneficiary firms invest more in R&D than non-beneficiaries in all regions, including those with lower institutional quality. Our results support the case of policies that promote research and innovation activities in weaker institutional contexts.
Keywords: R&D subsidies; Innovation performance; Institutions; Institutional quality; Policy evaluation (search for similar items in EconPapers)
Date: 2019
Note: View the original document on HAL open archive server: https://hal.univ-lorraine.fr/hal-02309586v1
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (15)
Published in Structural Change and Economic Dynamics, 2019, 50, pp.65-78. ⟨10.1016/j.strueco.2019.04.002⟩
Downloads: (external link)
https://hal.univ-lorraine.fr/hal-02309586v1/document (application/pdf)
Related works:
Journal Article: The impact of R&D subsidies under different institutional frameworks (2019) 
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:hal:journl:hal-02309586
DOI: 10.1016/j.strueco.2019.04.002
Access Statistics for this paper
More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().