Do direct subsidies stimulate new R&D outputs in firms? Evidence from the Czech Republic

0559997 - NHU-C 2023 RIV US eng J - Journal Article
Sidorkin, O. - Srholec, Martin
Do direct subsidies stimulate new R&D outputs in firms? Evidence from the Czech Republic.
Journal of the Knowledge Economy. Roč. 13, č. 3 (2022), s. 2203-2229. ISSN 1868-7865. E-ISSN 1868-7873
R&D Projects: GA ČR(CZ) GA17-09265S
Institutional support: Cooperatio-COOP
Keywords : R&D output * government subsidy * additionality effect
OECD category: Applied Economics, Econometrics
Impact factor: 3.3, year: 2022
Method of publishing: Limited access
https://doi.org/10.1007/s13132-021-00812-y

This study examines output additionality effects of direct support to business R&D in the Czech Republic over 2004–2016. Using a large and rich firm-level dataset, we employ a non-parametric propensity score matching estimator to find out whether the subsidies stimulated new applications for formal intellectual property (IP) protection that would not have been made otherwise. The results indicate additionality effects for IP protection of R&D outputs at home but not abroad. Hence, the subsidies have fallen short of expectations for promoting new technology that is sufficiently novel to warrant international IP protection and thus could make a difference in foreign markets. The paper concludes with reflections on how subsidy programmes of this kind are justified, designed and evaluated.
Permanent Link: https://hdl.handle.net/11104/0333104