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The impact of R&D subsidies on R&D employment composition

Sergio Afcha () and Jose Garcia-Quevedo ()
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Sergio Afcha: Pontificia Universidad Católica del Perú

No 2014/22, Working Papers from Institut d'Economia de Barcelona (IEB)

Abstract: In this paper we examine the impact of subsidies granted at national and regional levels on a set of R&D employment variables and, specifically, we seek to identify the existence of the behavioural additionality effects of these public subsidies on firms’ R&D human resources. We begin by assessing the effects of public funds on R&D private expenditures and on the number of R&D employees, and then focus on their impact on the composition of human resources engaged in R&D as classified by occupation and level of education. The data used correspond to the Spanish Technological Innovation Panel for the period 2006-2011. To control for selection bias and endogeneity, a combination of non-parametric matching techniques are implemented. After ruling out the existence of crowding out effects, our results show that R&D subsidies increase the number of R&D employees. However, no increase is found in the average level of qualification of R&D staff members in subsidized firms. All in all, the effects of public support are heterogeneous being dependent on the source of the subsidy and the firms’ characteristics.

Keywords: R&D subsidies; R&D employment; matching estimators; technology policy (search for similar items in EconPapers)
JEL-codes: O38 J24 H25 C14 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-eur, nep-ino, nep-knm, nep-sbm and nep-tid
Date: 2014
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Journal Article: The impact of R&D subsidies on R&D employment composition (2016) Downloads
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