Work

The legacy of public subsidies for innovation: input, output and behavioural additionality effects

Year: 2016

Type: report

Abstract: In many countries significant amounts of public funding are devoted to supporting firms’ R&D and innovation projects. Here, using panel data on the innovation activities of Irish manufacturing firms we examine the legacy effects of public subsidies for new product development and R&D. We examine five alternative mechanisms through which such effects may occur: input additionality, output additionality, and congenital, interorganisational and experiential behavioural additionality. Tests suggest contrasting legacy effects with R&D subsidies generating legacy output additionality effects while new product development subsidies have legacy congenital and inter-organisational behavioural additionality effects. Our results have implications for innovation policy design and evaluation.

Source: Research Portal (Queen's University Belfast)

Authors: Stephen Roper, Nola Hewitt‐Dundas

Institutions: University of Warwick, Queen's University Belfast, Queen's University

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

Funders: HSBC Bank USA, Economic and Social Research Institute, Economic and Social Research Council

Award: Enterprise Research Centre (ERC)