Ruhr Economic Papers

Ruhr Economic Papers #587

Systemic Aspects of R&D Policy - Subsidies for R&D Collaborations and Their Effects on Private R&D

by Dirk Engel, Michael Rothgang and Verena Eckl

RWI, 12/2015, 27 S./p., 8 Euro, ISBN 978-3-86788-682-6 DOI: 10.4419/86788682



The paper analyses how context and time dependent factors determine the impulse of R&D subsidies on firm behavior with respect to private R&D expenditures. Based on data from the German R&D survey, we combine propensity-score matching with a difference-in-difference-estimator in order to measure the causal influence of public direct R&D project funding on firm behavior. Our results indicate that (i) repeated participation in R&D projects on average leads to a higher increase in R&D expenditures than one-time funding; (ii) the aggregate effect of R&D funding on R&D expenditures of business firms is somewhat higher for business and business collaboration projects than for science and business collaboration projects; (iii) R&D expenditures of business firms that cooperate with science show a higher share of external R&D spending. Results of one particular cluster programme indicate that at least the short-term development of R&D does not so much depend on which programme direct R&D project funding is applied to.

JEL-Classification: C14, C25, H50, O38

Keywords: R&D; public subsidies; collaboration; policy evaluation

Published as:

Engel, D., M. Rothgang and V. Eckl (2016), System Aspects of R&D Policy. Subsidies for R&D Collaborations and Their Effects on Private R&D. Industry and Innovation 3 (2): 206-222. DOI: 10.1080/13662716.2016.1146127