Crowding out or Stimulus : The Effect of Public R & D Subsidies on Firm ’ s R & D expenditure — draft
نویسنده
چکیده
This paper analyzes the effects of public R&D subsidies on innovation expenditure in German manufacturing. The key question is whether public R&D stimulates or simply crowds out private investment. Cross sectional data at the firm level are used to estimate the effect of subsidization. By adopting parametric and semiparametric selection models it turns out that public funding increases firms’ R&D expenditure. So the hypothesis of crowding-out effects between public and private R&D funding can be rejected.
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