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R&D and subsidies at the firm level: an application of parametric and semiparametric two‐step selection models
Author(s) -
Hussinger Katrin
Publication year - 2008
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.1016
Subject(s) - subsidy , selection (genetic algorithm) , investment (military) , parametric statistics , economics , product (mathematics) , german , semiparametric model , microeconomics , econometrics , nonparametric statistics , mathematics , computer science , statistics , geometry , archaeology , artificial intelligence , politics , political science , law , market economy , history
This paper analyzes the effect of public R&D subsidies on firms' private R&D investment per employee and new product sales in German manufacturing. Parametric and semiparametric two‐step selection models are applied to this evaluation problem. The results show that the average treatment effect on the treated firms' R&D intensity is positive. The estimated effects are robust with respect to the different selection models. Further results show that publicly induced R&D spending is as productive as private R&D investment in generating new product sales. Copyright © 2008 John Wiley & Sons, Ltd.