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The Impact of Public R&D Subsidies on Firm's R&D Activities: Evidence from Japanese firm-level data(in Japanese)

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  • ITO Banri
  • NAKANO Satoshi

Abstract

This paper examines the impact of public R&D subsidies on firm's R&D activities using micro-data on Japanese manufacturing firms from 1995 to 2005. We focus on two effects. One is the quantitative impact of whether the public R&D subsidies crowed out firm's own R&D investment or not. The other one is qualitative impact of whether the subsidized firms increase R&D investment into the fields where social returns are large. In the empirical analysis, we examine the causal effects of public R&D subsidies using propensity score matching and difference-in-differences technique. The results suggest that the level of firm's own R&D investments is not affected by public R&D subsidies and the public R&D subsidies encourage firm's R&D activity in specific fields such as environment and ICT which are expected as socially influential.

Suggested Citation

  • ITO Banri & NAKANO Satoshi, 2009. "The Impact of Public R&D Subsidies on Firm's R&D Activities: Evidence from Japanese firm-level data(in Japanese)," ESRI Discussion paper series 222, Economic and Social Research Institute (ESRI).
    • Handle: RePEc:esj:esridp:222
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