This paper evaluates the impact of an R&D subsidy program implemented in a region of northern Italy on innovation by … beneficiary firms. In order to verify whether the subsidies enabled firms to increase patenting activity, we exploit the mechanism … used to allot the funds. Since only projects that scored above a certain threshold received the subsidy, we use a sharp …

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 … realize benefits from R&D subsidies in terms of innovations. The study considers two dimensions of the firm’s knowledge …