Who Gets the Money? The Dynamics of R&D Project Subsidies in Germany

37 Pages Posted: 28 Mar 2008 Last revised: 16 Jun 2009

See all articles by Birgit Aschhoff

Birgit Aschhoff

ZEW – Leibniz Centre for European Economic Research

Date Written: 2008

Abstract

The question of the allocation of public R&D funding is becoming particularly important when it comes to identifying the effects of state subsidies, in terms of input or output additionality. This analysis goes one important step further than the existing literature by including the time dimension. Using firm-level data on German manufacturing and knowledge-intensive service firms, this paper sheds light on the structure of the subsidy recipients over time. It turns out that participation in the funding scheme is quite stable. This is also confirmed by applying a multivariate approach. Firms having received funding in the past are more likely to be selected for public funding again. It is also important to control for the overall supply of subsidies. Besides, a firm's size and knowledge capabilities increase the probability of entering the scheme.

Keywords: R&D, Public Subsidies, Program Participation, Germany

JEL Classification: C20, H32, O38

Suggested Citation

Aschhoff, Birgit, Who Gets the Money? The Dynamics of R&D Project Subsidies in Germany (2008). ZEW - Centre for European Economic Research Discussion Paper No. 08-018, Available at SSRN: https://ssrn.com/abstract=1113722 or http://dx.doi.org/10.2139/ssrn.1113722

Birgit Aschhoff (Contact Author)

ZEW – Leibniz Centre for European Economic Research ( email )

P.O. Box 10 34 43
L 7,1 D-68161 Mannheim
Germany
+49 621 1235 182 (Phone)
+49 621 1235 170 (Fax)

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