Innovation Subsidies: Does the Funding Source Matter for Innovation Intensity and Performance? Empirical Evidence from Germany
Centre for European Economic Research (ZEW); Catholic University of Leuven (KUL)
Cindy Lopes Bento
CEPS/INSTEAD; K.U.Leuven; ZEW
ZEW - Centre for European Economic Research Discussion Paper No. 11-053
Applying a variant of a non-parametric matching estimator, we consider European funding and national funding as heterogeneous treatments, distinguishing and simultaneously analyzing the effect these treatments have on innovation input and performance. In terms of input, getting funding from both sources yields the highest impact. If funding from only one source is received, EU grants have higher effects. In terms of output, holding innovation expenditures constant, funding from both sources display higher sales of market novelties and future patent applications at the firm level. If only one grant is obtained, we find superiority for national funding.
Number of Pages in PDF File: 46
Keywords: Subsidies, Innovation, Policy Evaluation, Treatment Effects, Nonparametric matching estimation
JEL Classification: C14, H50, O38working papers series
Date posted: August 12, 2011
© 2013 Social Science Electronic Publishing, Inc. All Rights Reserved.
This page was processed by apollo1 in 0.469 seconds