EconPapers    
Economics at your fingertips  
 

Barriers to innovation and subsidy e¤ectiveness

Xulia González (), Jordi Jaumandreu () and Consuelo Pazó ()

No 112, Working Papers from Universidade de Vigo, Departamento de Economía Aplicada

Abstract: This paper explores the effects of R&D commercial subsidies by means of a model of firms’ decisions about performing R&D when some government support can be expected. To estimate the parameters of interest we use an unbalanced panel sample of 1,800 performing and non-performing Spanish manufacturing firms. For the non-performing firms, we compute the trigger subsidies required to induce R&D spending (a measure of market failure). Among the performing …rms, we can detect the ones that would cease to perform R&D if subsidies were eliminated. We also explore the change in the privately financed R&D effort of the performing firms. Results support the claim that market failures are real and subsidies stimulate R&D activities, but also show that actual subsidies go to firms that would have performed R&D otherwise.

Keywords: R&D; innovation; subsidies; thresholds; Tobit model (search for similar items in EconPapers)
JEL-codes: C24 L11 O32 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2001-06
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
http://webX06.webs.uvigo.es/sites/default/files/wp0112.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
Journal Article: Barriers to Innovation and Subsidy Effectiveness (2005)
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:vig:wpaper:0112

Access Statistics for this paper

More papers in Working Papers from Universidade de Vigo, Departamento de Economía Aplicada Contact information at EDIRC.
Bibliographic data for series maintained by Departamento de Economía Aplicada ().

 
Page updated 2022-01-23
Handle: RePEc:vig:wpaper:0112