Two for the Price of One? On Additionality Effects of R&D Subsidies : A Comparison between Flanders and Germany

In this paper we empirically test whether public Ramp;D subsidies crowd out private Ramp;D investment in Flanders and Germany, using firm level data from the Flemish and German part of the Community Innovation survey (CIS III and IV). Both the non-parametric matching estimator and the conditional difference-in-difference estimator with repeated cross-sections (CDiDRCS) clearly indicate that the crowding-out hypothesis can be rejected: funded firms are significantly more Ramp;D active than non-funded firms. In the domain of additionality effects of Ramp;D subsidies, this paper is the first to apply the CDiDRCS method

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Year of publication:	[2008]
Authors:	Aerts, Kris
Other Persons:	Schmidt, Tobias (contributor)
Publisher:	[2008]: [S.l.] : SSRN
Subject:	Deutschland \| Germany \| Vergleich \| Comparison \| Forschungsfinanzierung \| Research funding \| Belgien \| Belgium \| Industrieforschung \| Industrial research \| Schätzung \| Estimation \| Verdrängungseffekt \| Crowding out

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