Template-type: ReDIF-Paper 1.0 Author-Name: Mohnen, Pierre Author-Email: p.mohnen@merit.unimaas.nl Author-Workplace-Name: UNU-MERIT and Maastricht University Author-Name: Bérubé, Charles Author-Workplace-Name: Industry Canada Title: Are Firms That Received R&D Subsidies More Innovative? Abstract: This paper looks at the effectiveness of R&D grants for Canadian plants that already benefit from R&D tax credits. Using a non-parametric matching estimator, we find that firms that benefited from both policy measures introduced more new products than their counterparts that only benefited from R&D tax incentives. They also made more world-first product innovations and were more successful in commercializing their innovations. Classification-JEL: O31, O32, O38, C13, H25 Keywords: Innovations, R&D, Matching Estimators, Mahalanobis, Innovation Survey, Tax Credits, Grants Series: UNU-MERIT Working Papers Creation-Date: 2007 Number: 2007-015 File-URL: https://unu-merit.nl/publications/wppdf/2007/wp2007-015.pdf File-Format: application/pdf File-Size: 275 Kb Handle: RePEc:unm:unumer:2007015