Template-type: ReDIF-Paper 1.0
Author-Name: Ziesemer, Thomas
Author-Email: ziesemer@merit.unu.edu
Author-Workplace-Name: UNU-MERIT, and SBE, Maastricht University
Title: The effects of R&D subsidies and publicly performed R&D on business R&D: A 
	 survey 
Abstract: This literature review shows that a majority of studies finds 
	 complementarity of R&D subsidies and tax credits with private R&D 
	 expenditures. A non-negligible minority finds incomplete crowding out. 
	 Full crowding out is found only for small parts of the respective 
	 samples or small sub-sectors of the economy under consideration. 
	 Education R&D and publicly performed R&D stimulate private R&D according 
	 to a small literature. We focus on the exceptions from these dominant 
	 results. The controversies concern firm size, interaction of policy 
	 instruments, and effectiveness of parts of publicly performed R&D. There 
	 are important suggestions for future research derived from our 
	 literature review: (i) use of dynamic models with adequate time lags, 
	 (ii) explaining effects of country and firm heterogeneity.
Classification-JEL: H25, O38
Keywords: Research & development, business R&D, subsidies, public R&D
Series: UNU-MERIT Working Papers
Creation-Date: 20190924
Number: 2019-036
File-URL: https://unu-merit.nl/publications/wppdf/2019/wp2019-036.pdf
File-Format: application/pdf
File-Size: 275 Kb
Handle: RePEc:unm:unumer:2019036