The effects of R&D subsidies and publicly performed R&D on business R&D: A survey
Thomas Ziesemer ()
No 2019-036, MERIT Working Papers from United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT)
This literature review shows that a majority of studies finds complementarity of R&D subsidies and tax credits with private R&D expenditures. A non-negligible minority finds incomplete crowding out. Full crowding out is found only for small parts of the respective samples or small sub-sectors of the economy under consideration. Education R&D and publicly performed R&D stimulate private R&D according to a small literature. We focus on the exceptions from these dominant results. The controversies concern firm size, interaction of policy instruments, and effectiveness of parts of publicly performed R&D. There are important suggestions for future research derived from our literature review: (i) use of dynamic models with adequate time lags, (ii) explaining effects of country and firm heterogeneity.
Keywords: Research & development; business R&D; subsidies; public R&D (search for similar items in EconPapers)
JEL-codes: H25 O38 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cse, nep-ind, nep-sbm and nep-tid
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Journal Article: The Effects of R&D Subsidies and Publicly Performed R&D on Business R&D: A Survey (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:unm:unumer:2019036
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