Promoting Innovation: The Differential Impact of R&D Subsidies

Volume/Issue: Volume 2022 Issue 192

Publication date: September 2022

ISBN: 9798400217968

$20.00

Add to Cart by clicking price of the language and format you'd like to purchase

Available Languages and Formats


English

Prices in red indicate formats that are not yet available but are forthcoming.

Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Economics- Macroeconomics , Economics / General , Innovation , patents , research and development , R&D , subsidies , multinationals , investment , technology policy

Also of interest

Measuring Soft Power: A New Global Index

WORKING PAPERS PUBLISHED IN SEPTEMBER 2005

WORKING PAPERS PUBLISHED IN SEPTEMBER 2007

WORKING PAPERS PUBLISHED IN JUNE 2007

Summary

We investigate the effect of R&D subsidies on firms’ innovation by ownership, industry, and firm size using German firm-level data. The impact of R&D subsidies is heterogeneous across industries for multinational corporations (MNCs) and domestic firms while it does not differ substantially by firm size. Domestic firms have a larger response in R&D spending in low-tech manufacturing, knowledge-intensive services, and technological services while the response of domestic and foreign MNCs is broadly similar and is greater in medium-tech and high-tech manufacturing. Foreign MNC subsidiaries’ response in terms of patents is greater than that of domestic MNCs in most industries.