(International) R&D collaboration and SMEs: The effectiveness of targeted public R&D support schemes

Hanna Hottenrott and Cindy Lopes-Bento

No 12-086, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: This study analyses the effectiveness of targeted public support for R&D investment. In particular, we test whether the specific policy design aiming at incentivizing (international) collaboration and R&D in small and mediumsized firms achieves the desired objectives on input as well as output additionality. Our results show that the targeted R&D subsidies accelerate R&D spending in the private sector, and especially so in the targeted groups. Further, we differentiate between privately financed R&D and subsidyinduced R&D investment to evaluate their respective effects on innovation performance. The results confirm that the induced R&D is productive as it translates into marketable product innovations. While both types of R&D investments trigger significant output effects, we find that the effect of subsidy-induced R&D investment is higher for firms that collaborate internationally as well as for SMEs.

Keywords: Innovation Policy; Subsidies; R&D; SMEs; International Collaboration; Treatment Effects; Innovation Performance (search for similar items in EconPapers)
JEL-codes: C14 C30 H23 O31 O38 (search for similar items in EconPapers)
Date: 2012
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: (International) R&D collaboration and SMEs: The effectiveness of targeted public R&D support schemes (2014)
Working Paper: (International) R&D collaboration and SMEs: The effectiveness of targeted public R&D support schemes (2013)
Working Paper: (International) R&D Collaboration and SMEs: The effectiveness of targeted public R&D support schemes (2012)
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