The effects of public R&D subsidies on firms' innovation activities: the case of Eastern Germany

Matthias Almus and Dirk Czarnitzki

No 01-10, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: This study analyzes the effects of public R&D policy schemes on the innovation activities of firms located in Eastern Germany. The main question in this context is whether public funds stimulate R&D activities or simply crowd out privately financed R&D. Empirically, we investigate the average causal effects of all public R&D schemes in Eastern Germany using a non?parametric matching approach. Compared to the case where no public financial means are provided, it turns out that firms increase their innovation activities by about four percentage points.

Keywords: Public Innovation Subsidies; Non?parametric Matching (search for similar items in EconPapers)
JEL-codes: C41 O31 O38 (search for similar items in EconPapers)
Date: 2001
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Citations: View citations in EconPapers (17)

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Related works:
Journal Article: The Effects of Public R&D Subsidies on Firms' Innovation Activities: The Case of Eastern Germany (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:5365

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