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The relationship between government and business r&d expenditure in the European Union

Author

Listed:
  • Nicolae BACILA

    (BABEȘ-BOLYAI UNIVERSITY)

Abstract

The present paper aims at providing an empirical contribution to the literature on the relationship between government and business R&D expenditure in the European Union. Based on an econometric model which estimates business expenditure as a function of government support through general expenditure and, state aid, respectively, we have found a positive correlation between these variables, suggesting that in most cases there is a complementary relationship according to which government expenditure creates an additional incentive for the business activities.

Suggested Citation

  • Nicolae BACILA, 2012. "The relationship between government and business r&d expenditure in the European Union," Anale. Seria Stiinte Economice. Timisoara, Faculty of Economics, Tibiscus University in Timisoara, vol. 0, pages 134-141, May.
    • Handle: RePEc:tdt:annals:v:xviii:y:2012:p:134-141
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    File URL: http://fse.tibiscus.ro/anale/Lucrari2012/kssue2012_018.pdf
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    References listed on IDEAS

    as
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    6. David, Paul A. & Hall, Bronwyn H. & Toole, Andrew A., 2000. "Is public R&D a complement or substitute for private R&D? A review of the econometric evidence," Research Policy, Elsevier, vol. 29(4-5), pages 497-529, April.
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    More about this item

    Keywords

    governement expenditure; state aid; business expenditure; complementary relationship; crowding out effect;
    All these keywords.

    JEL classification:

    • C54 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Quantitative Policy Modeling
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies

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