Assessing the effect of public subsidies on firm R&D investment: a survey Articles uri icon

authors

publication date

  • February 2014

start page

  • 36

end page

  • 67

issue

  • 1

volume

  • 28

International Standard Serial Number (ISSN)

  • 0950-0804

Electronic International Standard Serial Number (EISSN)

  • 1467-6419

abstract

  • This survey examines the empirical literature on the relationship between public R&D subsidies and private R&D investment over the past five decades. The survey reveals a considerable heterogeneity of empirical results that cannot be explained fully by methodological issues. We aim to provide further explanations of the possible causes of that heterogeneity. In particular, we emphasise a set of issues that, in our view, are critical to understanding the potential effect of public R&D subsidies on private R&D spending. Special attention is paid to the dynamic aspects and composition of firm R&D, the constraints faced by the firm (such as financial constraints), and the amount and source of public subsidies. None of these issues have been investigated in depth. We formulate a set of research assumptions to guide future empirical research in this field.

subjects

  • Economics

keywords

  • innovation; public subsidies; r&d investment