The Impact of R&D Subsidies Policy on Enterprise R&D Inefficiency ——Evidence from OECD Countries

Due to information asymmetry, the negative impact of R&D subsidies misallocation is becoming increasingly obvious. This study constructs a two-step empirical analysis framework to examine the effect of R&D subsidies on enterprise R&D inefficiency from a view of resource misallocation. Using a country-level data in OECD from 2006 to 2019, we find that R&D subsidies can aggravate R&D inefficiency. Further exploration of sources of inefficiency shows that R&D subsidies can exacerbate both R&D input redundancy and output insufficiency