The Impact of R&D Subsidies on R&D Employment Composition

IEB Working Paper N. 2014/22

34 Pages Posted: 25 Jul 2014

See all articles by Sergio Afcha

Sergio Afcha

Centrum Catolica Graduate Business School

Jose Garcia-Quevedo

Barcelona Institute of Economics (IEB); University of Barcelona - Faculty of Economic Science and Business Studies

Date Written: May 19, 2014

Abstract

In this paper we examine the impact of subsidies granted at national and regional levels on a set of R&D employment variables and, specifically, we seek to identify the existence of the behavioural additionality effects of these public subsidies on firms’ R&D human resources. We begin by assessing the effects of public funds on R&D private expenditures and on the number of R&D employees, and then focus on their impact on the composition of human resources engaged in R&D as classified by occupation and level of education.

The data used correspond to the Spanish Technological Innovation Panel for the period 2006-2011. To control for selection bias and endogeneity, a combination of non-parametric matching techniques are implemented. After ruling out the existence of crowding out effects, our results show that R&D subsidies increase the number of R&D employees. However, no increase is found in the average level of qualification of R&D staff members in subsidized firms. All in all, the effects of public support are heterogeneous being dependent on the source of the subsidy and the firms’ characteristics.

Keywords: R&D subsidies, R&D employment, matching estimators, technology policy

JEL Classification: O38, J24, H25, C14

Suggested Citation

Afcha, Sergio and Garcia-Quevedo, Jose and Garcia-Quevedo, Jose, The Impact of R&D Subsidies on R&D Employment Composition (May 19, 2014). IEB Working Paper N. 2014/22, Available at SSRN: https://ssrn.com/abstract=2471050 or http://dx.doi.org/10.2139/ssrn.2471050

Sergio Afcha

Centrum Catolica Graduate Business School ( email )

Jr. Daniel Alomía Robles 125
Urbanización Los Álamos de Monterrico
Lima
Peru

Jose Garcia-Quevedo (Contact Author)

University of Barcelona - Faculty of Economic Science and Business Studies ( email )

Barcelona
Spain

Barcelona Institute of Economics (IEB) ( email )

Av. Diagonal 690
Barcelona, E-08034
Spain

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