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The impact of R&D subsidies on R&D employment composition

Author

Listed:
  • Sergio Afcha

    (Pontificia Universidad Católica del Perú)

  • Jose García-Quevedo

    (University of Barcelona & IEB)

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.

Suggested Citation

  • Sergio Afcha & Jose García-Quevedo, 2014. "The impact of R&D subsidies on R&D employment composition," Working Papers 2014/22, Institut d'Economia de Barcelona (IEB).
    • Handle: RePEc:ieb:wpaper:doc2014-22
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    References listed on IDEAS

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    Cited by:

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    2. Modou Mar & Nadine Massard, 2021. "Animate the cluster or subsidize collaborative R&D? A multiple overlapping treatments approach to assess the impacts of the French cluster policy [The impact of R&D subsidies on R&D employment comp," Industrial and Corporate Change, Oxford University Press and the Associazione ICC, vol. 30(4), pages 845-867.
    3. Cao, Qinwei & Qiu, Shunli & Huang, Jian, 2022. "Contradiction and mechanism analysis of science and technology input-output: Evidence from key universities in China," Socio-Economic Planning Sciences, Elsevier, vol. 79(C).
    4. Lanahan, Lauren & Joshi, Amol M. & Johnson, Evan, 2021. "Do public R&D subsidies produce jobs? Evidence from the SBIR/STTR program," Research Policy, Elsevier, vol. 50(7).
    5. Jugend, Daniel & Fiorini, Paula De Camargo & Armellini, Fabiano & Ferrari, Aline Gabriela, 2020. "Public support for innovation: A systematic review of the literature and implications for open innovation," Technological Forecasting and Social Change, Elsevier, vol. 156(C).
    6. Tchorzewska, K.B. & Garcia-Quevedo, J. & Martinez-Ros, E., 2022. "The heterogeneous effects of environmental taxation on green technologies," Research Policy, Elsevier, vol. 51(7).
    7. Gao, Yuchen & Hu, Yimei & Liu, Xielin & Zhang, Huanren, 2021. "Can public R&D subsidy facilitate firms’ exploratory innovation? The heterogeneous effects between central and local subsidy programs," Research Policy, Elsevier, vol. 50(4).
    8. Li, Jiachen & Jiang, Meiru & Li, Ge, 2024. "Does the new energy vehicles subsidy policy decrease the carbon emissions of the urban transport industry? Evidence from Chinese cities in Yangtze River Delta," Energy, Elsevier, vol. 298(C).
    9. Hu, Xinlei & Wang, Xiaokun (Cara) & Ni, Linglin & Shi, Feng, 2022. "The impact of intercity economic complementarity on HSR volume in the context of megalopolization," Journal of Transport Geography, Elsevier, vol. 98(C).
    10. Afcha, S. & García-Quevedo, J. & Mas-Verdú, F., 2023. "Gaining or losing PhDs: What are the effects on firms' linkages with universities?," Technological Forecasting and Social Change, Elsevier, vol. 186(PA).

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    More about this item

    Keywords

    R&D subsidies; R&D employment; matching estimators; technology policy;
    All these keywords.

    JEL classification:

    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • C14 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Semiparametric and Nonparametric Methods: General

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