The impact of R&D subsidies on firm innovation

Raffaello Bronzini () and Paolo Piselli

Research Policy, 2016, vol. 45, issue 2, 442-457

Abstract: This paper evaluates the impact of an R&D subsidy program implemented in a region of northern Italy in the early 2000s on innovation by beneficiary firms. We use a regression discontinuity design strategy to assess the effect of the grants on the number of patent applications and the likelihood of submissions by subsidized firms. We find that the program had a significant impact on the number of patent applications, more markedly in the case of smaller firms. Our results also show that the program was successful in increasing the likelihood of applying for a patent, but only for smaller firms. Our estimates show that one additional patent application requires grants of between €206,000 and €310,000 to the firms.

Keywords: Innovation incentives; Research and development; Patents; Regression discontinuity design (search for similar items in EconPapers)
JEL-codes: H2 L10 R0 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (186)

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Related works:
Working Paper: The impact of R&D subsidies on firm innovation (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:respol:v:45:y:2016:i:2:p:442-457

DOI: 10.1016/j.respol.2015.10.008

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