Work

Barriers to innovation and subsidy effectiveness

Year: 2001

Type: article

Abstract: We explore the effects of subsidies by means of a model of firms' decisions about performing R&D when some government support can be expected. We estimate it with data on about 2,000 performinga nd nonperformingS panishm anufacturingfi rms. Wec omputet he subsidies required to induce R&D spending, we detect the firms that would cease to perform R&D without subsidies, and assess the change in the privately financed effort. Results suggest that subsidies stimulate R&D and some firms would stop performing in their absence, but most actual subsidies go to firms that would have performed R&D otherwise. We find no crowding out of private funds.

Source: LA Referencia (Red Federada de Repositorios Institucionales de Publicaciones Científicas)

Authors: Xulia González, Jordi Jaumandreu, Consuelo Pazó

Institutions: Universidade de Vigo, Universidad Carlos III de Madrid

Language: English

Topic: Innovation Policy and R&D

Subfield: Economics and Econometrics

Field: Economics, Econometrics and Finance

Domain: Social Sciences

SDG: Industry, innovation and infrastructure

Open Access status: green

OpenAlex ID: W116661317

FWCI: 5.438

Cites: 28

Cited by: 445

Related to: 10