Incorporating innovation subsidies in the CDM framework : empirical evidence from Belgium

Dirk Czarnitzki and Julie Delanote

This paper integrates innovation input and output effects of R&D subsidies into a modified Crépon–Duguet–Mairesse (CDM) model. Our results largely confirm insights of the input additionality literature, i.e. public subsidies complement private R&D investment. In addition, results point to positive output effects of both purely privately funded and subsidy–induced R&D. Furthermore, we do not find evidence of a premium or discount of subsidy–induced R&D in terms of its marginal contribution on new product sales when compared to purely privately financed R&D.

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Year of publication:	May 2016 ; This version: May 2016
Authors:	Czarnitzki, Dirk ; Delanote, Julie
Publisher:	Mannheim : ZEW, Zentrum für Europäische Wirtschaftsforschung GmbH
Subject:	CDM model \| R&D \| subsidies \| innovation policy \| Clean Development Mechanism \| Clean development mechanism \| Technologiepolitik \| Technology policy \| Belgien \| Belgium \| Subvention \| Subsidy \| Innovation \| Forschungsfinanzierung \| Research funding \| Wirkungsanalyse \| Impact assessment \| Klimaschutz \| Climate protection