Duch Brown, NéstorGarcia-Quevedo, JoseMontolio, Daniel2017-10-132017-10-132011https://hdl.handle.net/2445/116557The 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.38 p.application/pdfengcc-by-nc-nd, (c) Duch Brown et al., 2011http://creativecommons.org/licenses/by-nc-nd/3.0/es/Recerca industrialGestió de la innovacióSubvencionsEstimació d'un paràmetreIndustrial researchInnovation managementSubsidiesParameter estimationinfo:eu-repo/semantics/workingPaperinfo:eu-repo/semantics/openAccess