realize benefits from R&D subsidies in terms of innovations. The study considers two dimensions of the firm’s knowledge … R&D subsidies on the knowledge-sourcing process increase firms’ innovation outcomes, thus making this policy … the granting of R&D subsidies does not affect firm innovation directly but rather through inducing changes in the firm’s R …

In evaluating the effectiveness of R&D subsidies, the literature has focused on potential crowding out effects, while … period 2001-2011, we show that misappropriation is a major threat. 42% of grantees misused R&D subsidies for non …-research purposes, accounting for 53% of the total amount of R&D subsidies. In a second step, we study the loss of effectiveness of R&D …