Public R&D subsidies and productivity: Evidence from firm-level data in Quebec

Baghana, Rufin (2010). Public R&D subsidies and productivity: Evidence from firm-level data in Quebec. UNU-MERIT.

Document type:
Report

Metadata
Documents
Versions
Statistics
  • Attached Files (Some files may be inaccessible until you login with your UNU Collections credentials)
    Name Description MIMEType Size Downloads
    wp2010-055.pdf PDF application/pdf 1.18MB
  • Author Baghana, Rufin
    Title Public R&D subsidies and productivity: Evidence from firm-level data in Quebec
    Publication Date 2010
    Publisher UNU-MERIT
    Abstract This paper analyses empirically the impacts of public R&D grants on private R&D investments and on the productivity growth of the manufacturing firms in a context where fiscal incentives are present. Using the conditional semiparametric differenceindifferences estimator on longitudinal data from Quebec we show that firms that use public grants for R&D in conjunction with tax credits for R&D perform better in terms of R&D input additionality than firms that use only tax credits for R&D. We then use a production function to assess the effectiveness of public R&D grants in the productivity growth of firms. We find that for each additional dollar of public R&D grant, output increases by 0.134 dollars. We conclude that the additional return of direct subsidies is positive but lower than the return on the R&D financed by own funds or R&D tax credits.
    Keyword R&D
    Public subsidies
    Quebec
    Productivity
    Difference-in-differences
    JEL H25
    O32
    Copyright Holder UNU-MERIT
    Copyright Year 2010
    ISSN 1871-9872
  • Versions
    Version Filter Type
  • Citation counts
    Google Scholar Search Google Scholar
    Access Statistics: 479 Abstract Views, 240 File Downloads  -  Detailed Statistics
    Created: Wed, 11 Dec 2013, 16:48:50 JST