The Impact of R&D Subsidies on Labor Productivity

Mika Pajarinen and Petri Rouvinen

No 35, ETLA Reports from The Research Institute of the Finnish Economy

Abstract: Abstract We summarize and compare previous studies considering the impact of R&D subsidies on firm-level labor productivity. These studies conclude quite consistently that the subsidies provided by Tekes do not have statistically significant impact on its client firms’ labor productivity. These studies go astray from the outset, however, as they neither measure what Tekes is set out to do nor correspond to its stated missions. Furthermore, serious methodological issues remain unaddressed both by these studies and by the literature at large. Our findings call for extensive effort in developing a more appropriate tool box for evaluating the impacts of innovation policy.

Keywords: Tekes; R&D subsidies; Productivity; Policy evaluation (search for similar items in EconPapers)
JEL-codes: L52 L53 O25 (search for similar items in EconPapers)
Pages: 22 pages
Date: 2014-10-23
New Economics Papers: this item is included in nep-cse, nep-eff, nep-ino and nep-knm
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Citations: View citations in EconPapers (1)

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