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Promoting Innovation : The Differential Impact of R&D Subsidies

We investigate the effect of R&D subsidies on firms’ innovation by ownership, industry, and firm size using German firm-level data. The impact of R&D subsidies is heterogeneous across industries for multinational corporations (MNCs) and domestic firms while it does not differ substantially by firm size. Domestic firms have a larger response in R&D spending in low-tech manufacturing, knowledge-intensive services, and technological services while the response of domestic and foreign MNCs is broadly similar and is greater in medium-tech and high-tech manufacturing. Foreign MNC subsidiaries’ response in terms of patents is greater than that of domestic MNCs in most industries
Year of publication:
2022
Authors: Chérif, Réda ; Hasanov, Fuad ; Grimpe, Christoph ; Sofka, Wolfgang
Publisher: [S.l.] : SSRN
Subject: Subvention | Subsidy | Technologiepolitik | Technology policy | Forschungsfinanzierung | Research funding | Innovation
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