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Are R&D subsidies effective? The effect of industry competition

Xiang Xin

No 2018-37, Economics Discussion Papers from Kiel Institute for the World Economy (IfW)

Abstract: This study explores the effect of industry competition on public R&D subsidies' effectiveness. The author finds the non-linear threshold effect of industry competition on R&D subsidies' effectiveness. Specifically, R&D subsidies' effectiveness reaches its peak when industry competition lies between the two estimated thresholds.

Keywords: social status; redistribution; externalities; optimal taxation (search for similar items in EconPapers)
JEL-codes: H25 L11 G31 G38 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-com and nep-ind
Date: 2018
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https://www.econstor.eu/bitstream/10419/178494/1/1020786264.pdf (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:zbw:ifwedp:201837

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