1BETA - Bureau d'Économie Théorique et Appliquée (Université de Lorraine, UFR Droit Sciences Economiques et Gestion, 13 place Carnot CO 70026, 54035 Nancy Cedex
Université de Strasbourg, Faculté des Sciences Economiques et de Gestion, 61 avenue de la Forêt Noire 67085 Strasbourg Cedex
- France)
Abstract : This paper assesses the impact of public R&D subsidies on business R&D investment in heterogeneous institutional frameworks. Public support for research and innovation activities may leverage private resources when firms are constrained by lower quality public institutions, reducing uncertainty and favouring private risky investments. We develop an institutional index based on existing indicators and group regional economies on the basis of the quality of their public institutions. We use a comprehensive sample of Spanish firms observed over more than 20 years and a larger dataset of 13 European economies drawn from the Community Innovation Survey 2014 to test the policy impact in terms of private R&D expenditure for companies operating in different institutional frameworks. Our findings reject full crowding-out and show that beneficiary firms invest more in R&D than non-beneficiaries in all regions, including those with lower institutional quality. Our results support the case of policies that promote research and innovation activities in weaker institutional contexts.
https://hal.univ-lorraine.fr/hal-02309586
Contributor : Touria Bagard <>
Submitted on : Wednesday, October 9, 2019 - 1:44:48 PM Last modification on : Tuesday, March 17, 2020 - 3:25:17 AM
Stefano Bianchini, Patrick Llerena, Roberto Martino. The impact of R&D subsidies under different institutional frameworks. Structural Change and Economic Dynamics, Elsevier, 2019, 50, pp.65-78. ⟨10.1016/j.strueco.2019.04.002⟩. ⟨hal-02309586⟩