Two for the price of one? On additionality effects of R&D subsidies: A comparison between Flanders and Germany

Kris Aerts and Tobias Schmidt

No 06-063, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: In this paper we empirically test whether public R&D subsidies crowd out private R&D investment in Flanders and Germany, using firm level data from the Flemish and German part of the Community Innovation survey (CIS III and IV). Both the non-parametric matching estimator and the conditional difference-in-difference estimator with repeated cross-sections (CDiDRCS) clearly indicate that the crowding-out hypothesis can be rejected: funded firms are significantly more R&D active than non-funded firms. In the domain of additionality effects of R&D subsidies, this paper is the first to apply the CDiDRCS method.

Keywords: R&D; Subsidies; Policy Evaluation; Conditional Difference-in-Difference (search for similar items in EconPapers)
JEL-codes: C14 C21 H50 O38 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-ino, nep-ipr and nep-pr~
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Citations: View citations in EconPapers (37)

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Journal Article: Two for the price of one?: Additionality effects of R&D subsidies: A comparison between Flanders and Germany (2008)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:5457

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