Evaluation of Public R&D Policies: A Cross-Country Comparison

35 Pages Posted: 31 Jan 2011

See all articles by Dirk Czarnitzki

Dirk Czarnitzki

Centre for European Economic Research (ZEW); Catholic University of Leuven (KUL)

Cindy Lopes-Bento

K.U.Leuven; ZEW

Multiple version iconThere are 2 versions of this paper

Date Written: September 1, 2010

Abstract

This study focuses on the effect of public funding on internal R&D investment and on total innovation intensity on a cross-country comparative level. Using harmonised micro data from five different countries, this study analyzes the heterogeneity of the use of policy instruments. Applying a nonparametric matching method to identify the treatment effect, we find that on average firms would have invested significantly less if they would not have received subsidies. On similar grounds, our estimation also takes into account the “treatment effects on the untreated”. This estimation enables us to assess whether or not governments could further foster R&D activities by extending innovation policies to currently not supported firms. With the exception of one country, all the governments of the sample would benefit from an extension of their subsidy policies. Finally, these two matching results can be combined in order to test for misallocation of public funds. Our analysis does not uncover any systematic misallocation of public funding for the countries under review.

Keywords: Innovation, Policy Evaluation, Treatment Effects, Cross-country comparison

JEL Classification: O38

Suggested Citation

Czarnitzki, Dirk and Lopes-Bento, Cindy, Evaluation of Public R&D Policies: A Cross-Country Comparison (September 1, 2010). Available at SSRN: https://ssrn.com/abstract=1749464 or http://dx.doi.org/10.2139/ssrn.1749464

Dirk Czarnitzki (Contact Author)

Centre for European Economic Research (ZEW) ( email )

P.O. Box 10 34 43
Mannheim, 68034
Germany

Catholic University of Leuven (KUL) ( email )

Faculty of Economics and Business
Naamsestraat 69
Leuven, 3000
Belgium
+32 16 326906 (Phone)
+32 16 325799 (Fax)

HOME PAGE: http://www.econ.kuleuven.be/msi/faculty_members.htm

Cindy Lopes-Bento

K.U.Leuven ( email )

Oude Markt 13
Leuven, Vlaams-Brabant 3000
Belgium

ZEW ( email )

P.O. Box 10 34 43
L 7,1
D-68034 Mannheim, 68034
Germany

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