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Contribution Details

Type Working Paper
Scope Discipline-based scholarship
Title Innovation subsidies: Does the funding source matter for innovation intensity and performance?
Organization Unit
  • Contribution from another University/Organization than University of Zurich
  • Dirk Czarnitzki
  • Cindy Lopes-Bento
  • English
Institution University of Zurich
Series Name ZEW Discussion Paper No. 11-053, Mannheim, Germany; CEPS Working Paper No. 2011-42, Esch-sur-Alzette, Luxembourg
Number 11-053
Number of Pages 36
Date 2013
Abstract Text In this paper we consider European and national funding for corporate innovation projects as heterogeneous treatments and analyze their effect on innovation input and output at the firm level. In terms of innovation input, we do not find evidence that one policy crowds out the effect of the other. Instead the policies are complements. In terms of output, we find that subsidy recipients are more active with respect to patenting. A citation analysis of patents reveals that the subsidy recipients file patents that are more valuable (in terms of forward citations) than those filed in the counterfactual situation of receiving no public support. These results suggest that public funding actually triggers socially beneficial research projects and that the co-existence of national and European policies does not lead to crowding-out effects when compared to a hypothetical world of a closed economy with no supplemental European policies.
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