The impact of R&D subsidies during the crisis

Arbeitspapier

This study investigates the impact of R&D subsidies on R&D investment during the past financial crisis. We conduct a treatment effects analysis and show that R&D subsidies increased R&D spending among subsidized small and medium sized firms in Germany during the crisis years. In the first crisis year, the additionality effect induced by public support was, however, smaller than in other years. This temporary decrease may be caused by an altered innovation subsidy scheme in crisis years or by a different innovation investment behavior of the subsidy recipients. We do not find support for the countercyclical innovation subsidy scheme having caused the smaller additionality effect and conclude that it is likely to be driven by subsidy recipient behavior.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: ZEW Discussion Papers ; No. 14-024

Classification and Topics

• Classification: Wirtschaft ; Semiparametric and Nonparametric Methods: General ; Single Equation Models; Single Variables: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions ; Financial Crises ; National Government Expenditures and Related Policies: General ; Technological Change: Government Policy
• Subject: R&D ; Subsidies ; Policy Evaluation ; Financial Crisis ; Treatment Effects

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Hud, Martin ; Hussinger, Katrin
• Event: Veröffentlichung
• (who): Zentrum für Europäische Wirtschaftsforschung (ZEW)
• (where): Mannheim
• (when): 2014

Further information

• Handle: http://hdl.handle.net/10419/96141
• URN: urn:nbn:de:bsz:180-madoc-366575
• Last update: 10.03.2025, 11:45 AM CET