This paper integrates innovation input and output effects of R&D subsidies into a modified Crépon–Duguet–Mairesse (CDM …) model. Our results largely confirm insights of the input additionality literature, i.e. public subsidies complement private …

-tech sectors. Therefore, the effect of subsidies on both R&D input and R&D output is compared between independent high-tech young … highest for independent high-tech firms. The indirect effect of subsidies on R&D output is evaluated within a patent …