Template-type: ReDIF-Paper 1.0
Author-Name: Garcia, Abraham
Author-Workplace-Name: European Commission JRC-IPTS, and UNU-MERIT
Author-Name: Mohnen, Pierre
Author-Email: mohnen@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, Maastricht University, and Cirano
Title: Impact of government support on R&D and innovation 
Abstract: This paper evaluates whether public support from innovation from the 
	 central government or the European Union spurs innovation in Austrian 
	 firms. The effect is estimated separately on R&D expenditures and the 
	 output side of innovation, measured by the share of total sales due to 
	 new or substantially modified products. A distinction is also made 
	 between products new to the firm and products new to the market. The 
	 analysis is based on the micro data from the third wave of Community 
	 Innovation Survey, CIS 3, covering the years 1998-2000. The 
	 effectiveness is estimated using a structural model explaining the 
	 determinants of various sources of government support and their effects 
	 on R&D and innovation output. 
	 Receiving central government support increases the intensity of R&D by 
	 2.3 percentage points. EU support is never significant once national 
	 support is taken into account. Central government support yields a 2.5 
	 percentage point increase in the share of new to firm innovative sales. 
	 When new to market product innovations are considered, central 
	 government support leads to a total effect on the share of new to market 
	 innovative sales of 3.4 percentage points.
Classification-JEL: H22, L52, O31
Keywords: government support, innovation surveys, Austria
Series: UNU-MERIT Working Papers
Creation-Date: 2010
Number: 034
File-URL: http://www.merit.unu.edu/publications/wppdf/2010/wp2010-034.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2010034