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Who Gets the Money?: The Dynamics of R&D Project Subsidies in Germany

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  • Aschhoff Birgit

    (Zentrum für Europäische Wirtschaftsforschung (ZEW), L7, 1, 68161 Mannheim, Germany)

Abstract

In this paper I analyze which firms receive R&D project grants and how this public support evolves over time by considering in particular firm’s previous participation. The extent of the dynamics of firms’ participation within the funding scheme gives information about the openness of the scheme towards non-participating firms. Using firm-level data on German manufacturing and knowledge-intensive service firms, it turns out that participation in the funding scheme shows a rather high level of continuity. This is also confirmed by applying a multivariate approach. Firms which received funding in the past are more likely to be selected for public funding again. Moreover, a firm’s size and knowledge capabilities increase the probability of entering the scheme.

Suggested Citation

  • Aschhoff Birgit, 2010. "Who Gets the Money?: The Dynamics of R&D Project Subsidies in Germany," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 230(5), pages 522-546, October.
    • Handle: RePEc:jns:jbstat:v:230:y:2010:i:5:p:522-546
    DOI: 10.1515/jbnst-2010-0503
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    More about this item

    Keywords

    R&D; public subsidies; program participation; Germany; R&D; public subsidies; program participation; Germany;
    All these keywords.

    JEL classification:

    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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