Use this identifier to quote or link this document: http://hdl.handle.net/2072/196043

Sunk costs, extensive R&D subsidies and permanent inducement effects
Arqué Castells, Pere; Mohnen, Pierre A.
Xarxa de Referència en Economia Aplicada (XREAP)
We study whether there is scope for using subsidies to smooth out barriers to R&D performance and expand the share of R&D firms in Spain. We consider a dynamic model with sunk entry costs in which firms’ optimal participation strategy is defined in terms of two subsidy thresholds that characterise entry and continuation. We compute the subsidy thresholds from the estimates of a dynamic panel data type-2 tobit model for an unbalanced panel of about 2,000 Spanish manufacturing firms. The results suggest that “extensive” subsidies are a feasible and efficient tool for expanding the share of R&D firms.
2012-05
332 - Economia regional i territorial. Economia del sòl i de la vivenda
Recerca industrial
Subvencions
Espanya
Industrial research
Subsidies
Spain
L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons: http://creativecommons.org/licenses/by/3.0/es/
44 p.
Working Paper
Xarxa de Referència en Economia Aplicada (XREAP)
XREAP;2012-10
         

Full text files in this document

Files Size Format
XREAP2012-10.pdf 411.3 KB PDF

Show full item record

Related documents

Other documents of the same author

Arqué Castells, Pere; Cartaxo, Rui M.; García, José, 1963-; Mira-Godinho, Manuel
 

Coordination

 

Supporters