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Incorporating innovation subsidies in the CDM framework: Empirical evidence from Belgium

By Dirk Czarnitzki and Julie Delanote

Abstract

This paper integrates innovation input and output effects of R&D subsidies into a modified Cr\ue9pon-Duguet-Mairesse (CDM) model. Our results largely confirm insights of the input additionality literature, i.e. public subsidies complement private R&D investment. In addition, results point to positive output effects of both purely privately funded and subsidy-induced R&D. Furthermore, we do not find evidence of a premium or discount of subsidy-induced R&D in terms of its marginal contribution on new product sales when compared to purely privately financed R&D

Topics: C14, C30, O38, ddc:330, CDM model, R&D, subsidies, innovation policy
Publisher: Mannheim: Zentrum f\ufcr Europ\ue4ische Wirtschaftsforschung (ZEW)
Year: 2016
OAI identifier: oai:econstor.eu:10419/142185
Provided by: EconStor

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