Building on a 1998 study by Rajan and Zingales, this paperexamines the impact of both general and government financial support on privateR&D rates and on firm expansion.A description of the theoreticalbackground for this research is provided with an emphasis on the subsidizationof small- and...

We build a structural model of application and selection into a treatment program to study the effects of R&D subsidies. The investments of the participant and the public agency running the program affect the treatment outcome. Using project level data we find that larger firms have higher...