Assessing the impact of public funds on private R&D: A comparative analysis between state and regional subsidies

This work examines the effects that R&D subsidies have on the R&D performed by the Spanish firms in the period 1998-2005. Despite the growth of empirical evidence with respect to the effects of R&D subsidies on firms’ innovative effort, few papers have established comparisons between technology policies implemented by regional and central governments. After a brief review of the existing literature, firm participation and the effects of R&D programs at regional and central level are analyzed. Empirical evidence is presented, in order to have a basis for comparison about effectiveness of the technology policies in regional and central level.