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The Effects of Federal Research and Development Subsidies on Firm Commercialization Behavior

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  • Smith, Daniel

Abstract

This paper assesses the longer term (up to 14 years) causal impact of federal research and development (R&D) subsidies on firms’ commercialization behavior. The data are for small firms which applied to the 1998-2000 Advanced Technology Program (ATP) competitions. A variant of the research design pioneered by Heckman (1979) allows for selection bias to be controlled for. Commercialization behavior is operationalized as the number of new product announcements related to the technology a firm mentions in its ATP proposal(s). The major finding is that receiving an ATP award has a positive and significant causal impact on a firm's commercialization behavior.

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  • Smith, Daniel, 2020. "The Effects of Federal Research and Development Subsidies on Firm Commercialization Behavior," Research Policy, Elsevier, vol. 49(7).
    • Handle: RePEc:eee:respol:v:49:y:2020:i:7:s0048733320300834
    DOI: 10.1016/j.respol.2020.104003
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    Cited by:

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    2. Collings, David & Corbet, Shaen & Hou, Yang (Greg) & Hu, Yang & Larkin, Charles & Oxley, Les, 2022. "The effects of negative reputational contagion on international airlines: The case of the Boeing 737-MAX disasters," International Review of Financial Analysis, Elsevier, vol. 80(C).
    3. Koh, Yumi & Lee, Gea M., 2023. "R&D subsidies in permissive and restrictive environment: Evidence from Korea," Research Policy, Elsevier, vol. 52(1).

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    More about this item

    Keywords

    Commercialization; R&D; Innovation; Subsidy JEL Codes: O3; H2;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • H2 - Public Economics - - Taxation, Subsidies, and Revenue

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