The possible adverse impact of innovation subsidies: some evidence from a bivariate switching model

The impact of public funding is estimated using firm-level Italian data. Results from a bivariate endogenous switching model show that innovative productivity is negatively affected by the innovation subsidy; far from â€˜doing better' as a result of government intervention, supported firms appear to exhaust their advantage through merely increasing their innovative expenditures.

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Year of publication:	2012
Authors:	Catozzella, Alessandra ; Vivarelli, Marco
Published in:	Economics Bulletin. - AccessEcon, ISSN 1545-2921. - Vol. 32.2012, 1, p. 648-661
Publisher:	AccessEcon
Subject:	innovation subsidy \| policy evaluation \| product innovation \| bivariate endogenous switching model

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Extent:	application/pdf
Type of publication:	Article
Language:	English
Classification:	O3 - Technological Change; Research and Development
Source:	RePEc - Research Papers in Economics

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