Innovation Subsidies: Does the Funding Source Matter for Innovation Intensity and Performance? Empirical Evidence from Germany

46 Pages Posted: 12 Aug 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: July 2011

Abstract

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.

Keywords: Subsidies, Innovation, Policy Evaluation, Treatment Effects, Nonparametric matching estimation

JEL Classification: C14, H50, O38

Suggested Citation

Czarnitzki, Dirk and Lopes-Bento, Cindy, Innovation Subsidies: Does the Funding Source Matter for Innovation Intensity and Performance? Empirical Evidence from Germany (July 2011). ZEW - Centre for European Economic Research Discussion Paper No. 11-053, Available at SSRN: https://ssrn.com/abstract=1908764 or http://dx.doi.org/10.2139/ssrn.1908764

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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