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Innovation subsidies: Does the funding source matter for innovation intensity and performance? Empirical evidence from Germany

Dirk Czarnitzki and BENTO Cindy Lopes

No 2011-42, LISER Working Paper Series from Luxembourg Institute of Socio-Economic Research (LISER)

Abstract: Applying a variant of a non-parametric matching estimator, we consider European funding and national funding as heterogeneous treatments, distinguishing and simultaneously analyzing the effect these treatments have on innovation input and performance. In terms of input, getting funding from both sources yields the highest impact. If funding from only one source is received, EU grants have higher effects. In terms of output, holding innovation expenditures constant, funding from both sources display higher sales of market novelties and future patent applications at the firm level. If only one grant is obtained, we find superiority for national funding.

Keywords: Subsidies; Innovation; Policy Evaluation; Treatment effects; Nonparametric matching estimation (search for similar items in EconPapers)
JEL-codes: C14 H50 O38 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2011-08
New Economics Papers: this item is included in nep-cse, nep-eff, nep-eur, nep-ino, nep-ipr, nep-pr~, nep-knm, nep-ppm and nep-sbm
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Citations: View citations in EconPapers (21)

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Related works:
Journal Article: Innovation Subsidies: Does the Funding Source Matter for Innovation Intensity and Performance? Empirical Evidence from Germany (2014) Downloads
Working Paper: Innovation subsidies: Does the funding source matter for innovation intensity and performance? Empirical evidence from Germany (2011) Downloads
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