R&D and Subsidies at the Firm Level: An Application of Parametric and Semi-Parametric Two-Step Selection Models

By K. Hussinger. 2008

429 citations recorded by the source corpus.

This paper analyzes the effect of public R&D subsidies on firms' private R&D investment per employee and new product sales in German manufacturing. Parametric and semiparametric two-step selection models are applied to this evaluation problem. The results show that the average treatment effect on the treated firms' R&D intensity is positive. The estimated effects are robust with respect to the different selection models. Further results show that publicly induced R&D spending is as productive as private R&D investment in generating new product sales. Copyright © 2008 John Wiley & Sons, Ltd.

Subfields: Economics and Econometrics

View Paper: https://www.semanticscholar.org/paper/39b9f34bc85b6d6f0385f8bea78536947da03f03

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Citations in the corpus

Do public subsidies stimulate private R&D spending? (2008, methodology): “On the contrary, Lach (2002) and Hussinger (2003) obtain less unfavorable results.”
Innovation Subsidies: Does the Funding Source Matter for Innovation Intensity and Performance? Empirical Evidence from Germany (2014, methodology): “…addressing the selection bias include Busom (2000), Wallsten (2000), Lach (2002), Almus and Czarnitzki (2003), Duguet (2004), González, Jaumandreu, and Pazó (2005), Czarnitzki, Ebersberger, and Fier (2007), Aerts and Schmidt (2008), Hussinger (2008) and Czarnitzki and Lopes-Bento (2012, 2013).”
The effects of public support schemes on small and medium enterprises (2015, background): “…Czarnitzki (2001), Czarnitzki and Fier (2002), Duguet (2004), Fier (2002), Gonzalez and Pazo (2006), Gonzalez et al. (2005), Gorg and Strobl (2007), Hussinger (2008), Loof and Heshmati (2005), Reinkowski et al. (2010), and Herrera and Sánchez-González (2013) reject full crowding-out effects, while…”
Value for Money? New Microeconometric Evidence on Public R&D Grants in Flanders (2012, result): “Other studies in this area include Almus and Czarnitzki (2003) finding that Eastern German firms which received public subsidies increased their innovation activities by about four percentage points, Czarnitzki and Hussinger (2004) as well as Czarnitzki and Licht (2006) finding a positive impact in ”
R&D policy instruments – a critical review of what we do and don’t know (2016, background): “…concluding that there is no evidence of a “crowding out” effect and some evidence that, without public funds, firms would have invested significantly less of their own funds in R&D (e.g. Aerts and Schmidt 2008; González and Pazó 2008; Hussinger 2008; Clausen 2009; Czarnitzki and Bento 2012).”
Do financial constraints threat the innovation process? Evidence from Portuguese firms (2011, background): “Still, these results may well reflect the idea of ‘subsidy persistence’ (Hussinger 2008).”
Using Innovation Survey Data to Evaluate R&D Policy: The Case of Belgium (2004, background): “…employ a matching approach – as done in this paper - to investigate the impact of public subsidies in Germany, and they reject full crowding-out in Eastern German manufacturing and in the German service sector; Hussinger (2003) explores semiparametric selection models using German survey data.”
Public R&D Policies and Private R&D Investment: A Survey of the Empirical Evidence (2015, methodology): “Employing parametric and semiparametric two-step selection models, Hussinger (2008) further finds evidence of additionality effects of publicly funded R&D on private R&D investment per employee in German manufacturing.”
Life satisfaction and self-employment: a matching approach (2010, background): “Another advantage of matching methods is that they require no assumptions on functional forms (Hussinger, 2008, p. 730).”
R&D subsidies and private R&D expenditures: evidence from Italian manufacturing data (2011, background): “See among others Busom (2000); Almus and Czarnitzki (2003); Aerts and Czarnitzki (2004); Duguet (2004); Gonzalez, Jaumandreu, and Pazó (2005); Hujer and Radic (2005); Czarnitzki and Licht (2006); Görg and Strobl (2007); Aerts and Schmidt (2008); Hussinger (2008).”
The Impact of R&D Subsidies on Firm Innovation (2016, background): “2 See for example: Lerner (1999), Busom (2000), Wallsten (2000), Lach (2002), Almus and Czarnitzki (2003), Gonzalez et al.”
R&D support programs in developing countries: The Turkish experience (2008, methodology): “13 For a recent application of Tobit models, see Hyytinen and Toivanen (2005). The Tobit model imposes the restriction that the effects of explanatory variables on “R&D intensity” and on “R&D decision” (to do or not to do R&D) are equal up to a constant of proportionality.”