Title:
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The link between public support and private R&D effort: what is the optimal subsidy?
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Author:
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Duch Brown, Néstor; Garcia-Quevedo, Jose; Montolio, Daniel
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Notes:
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The effectiveness of R&D subsidies can vary substantially depending on their characteristics. Specifically, the amount and intensity of such subsidies are crucial issues in the design of public schemes supporting private R&D. Public agencies determine the intensities of R&D subsidies for firms in line with their eligibility criteria, although assessing the effects of R&D projects accurately is far from straightforward. The main aim of this paper is to examine whether there is an optimal intensity for R&D subsidies through an analysis of their impact on private R&D effort. We examine the decisions of a public agency to grant subsidies taking into account not only the characteristics of the firms but also, as few previous studies have done to date, those of the R&D projects. In determining the optimal subsidy we use both parametric and non-parametric techniques. The results show a non-linear relationship between the percentage of subsidy received and the firms’ R&D effort. These results have implications for Technology policy, particularly for the design of R&D subsidies that ensure enhanced effectiveness. |
Subject(s):
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-Recerca industrial -Gestió de la innovació -Subvencions -Estimació d'un paràmetre -Industrial research -Innovation management -Parameter estimation -Subsidies |
Rights:
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cc-by-nc-nd, (c) Duch Brown et al., 2011
http://creativecommons.org/licenses/by-nc-nd/3.0/es/
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Document type:
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Working Paper |
Published by:
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Institut d’Economia de Barcelona
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