Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5103923 | Research Policy | 2016 | 16 Pages |
Abstract
This study analyzes the effect of public R&D subsidies on private R&D expenditure in a sample of French firms during the period 1993-2009. We evaluate whether there is any input additionality of public R&D subsidies by distinguishing between R&D tax credit recipient and non-recipient firms. In addition, combining difference-in-differences with propensity score and exact (both simple and categorical) matching methods, we assess the effect of R&D subsidies between treated (subsidy recipients) and controls (subsidy non-recipients) as well as between differently treated (small, medium and large subsidy recipient) firms. Furthermore, we implement a dose-response matching approach to determine the optimality of public R&D subsidy provisions. We find evidence of either no additionality or substitution effects between public and private R&D expenditure. Crowding-out effects appear to be more pronounced for medium-high levels of public subsidies, and generally under the R&D tax credit regime. A number of robustness checks corroborate our main findings.
Keywords
Related Topics
Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Marianna Marino, Stephane Lhuillery, Pierpaolo Parrotta, Davide Sala,