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Title: | The link between public support and private R&D effort: what is the optimal subsidy? |
Author: | Duch Brown, Néstor Garcia-Quevedo, Jose Montolio, Daniel |
Keywords: | Recerca industrial Gestió de la innovació Subvencions Estimació d'un paràmetre Industrial research Innovation management Subsidies Parameter estimation |
Issue Date: | 2011 |
Publisher: | Institut d’Economia de Barcelona |
Series/Report no: | [WP E-IEB11/12] |
Abstract: | 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. |
Note: | Reproducció del document publicat a: http://www.ieb.ub.edu/2012022157/ieb/ultimes-publicacions |
It is part of: | IEB Working Paper 2011/12 |
URI: | http://hdl.handle.net/2445/116557 |
Appears in Collections: | IEB (Institut d’Economia de Barcelona) – Working Papers |
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IEB11-12_DuchBrown.pdf | 569.81 kB | Adobe PDF | View/Open |
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