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The Impact of Public Funding for Innovation on Firms' R&D Investments: Do R&D Cooperation and Appropriability Matter?

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  • Manuela Gussoni
  • Andrea Mangani

Abstract

This paper provides an empirical framework to explore how public funding affects firms' R&D investments depending on their engagement in horizontal R&D cooperation and on different levels of appropriability conditions within the economy. The sample includes Spanish and Italian firms participating at the 3rd and 4th Third Community Innovation Survey. The results confirm that the impact of public funding on R&D investments depends on the firms' cooperative behavior and the appropriability conditions, although the influence is not homogeneous. In addition, the empirical findings highlight some important tradeoffs between those policies that support innovation activities.

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  • Manuela Gussoni & Andrea Mangani, 2012. "The Impact of Public Funding for Innovation on Firms' R&D Investments: Do R&D Cooperation and Appropriability Matter?," L'industria, Società editrice il Mulino, issue 2, pages 237-254.
    • Handle: RePEc:mul:j0hje1:doi:10.1430/37674:y:2012:i:2:p:237-254
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    Cited by:

    1. Luciano Fanti & Luca Gori, 2012. "Endogenous Lifetime in an Overlapping-Generations Small Open Economy," FinanzArchiv: Public Finance Analysis, Mohr Siebeck, Tübingen, vol. 68(2), pages 121-152, June.
    2. Chiara Franco & Manuela Gussoni, 2014. "The role of firm and national level factors in fostering R&D cooperation: a cross country comparison," The Journal of Technology Transfer, Springer, vol. 39(6), pages 945-976, December.
    3. Lorenzo Corsini & Pier Mario Pacini & Luca Spataro, 2010. "Workers' Choice on Pension Schemes: an Assessment of the Italian TFR Reform Through Theory and Simulations," Discussion Papers 2010/96, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.
    4. Luciano Fanti & Luca Gori, 2009. "Endogenous fertility, endogenous lifetime and economic growth: the role of health and child policies," Discussion Papers 2009/91, Dipartimento di Economia e Management (DEM), University of Pisa, Pisa, Italy.

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    More about this item

    Keywords

    R&D Cooperatives; Subsidies; Knowledge Spillovers; Innovation. JEL Classification: O320; H200; L100; D430; D780;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation

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