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
Collection:
-
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-differencesJEL H25
O32Copyright Holder UNU-MERIT Copyright Year 2010 ISSN 1871-9872 -
Citation counts Search Google Scholar
Access Statistics: 488 Abstract Views, 244 File Downloads - Detailed Statistics Created: Wed, 11 Dec 2013, 16:48:50 JST