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How Effective are Government R&D Subsidies: The Empirical Evidence

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  • Fölster, Stefan

    (Research Institute of Industrial Economics (IFN))

Abstract

Government subsidized industrial R & D stands for a large and increasing segment of the total R & D conducted. Yet very little is known about the effectiveness of such subsidies. This paper summarizes the empirical literature concerning direct project subsidies, tax credits, and support for industrial research institutes. This helps to identify what makes government policy effective from the government's perspective and how it affects firms.

Suggested Citation

  • Fölster, Stefan, 1987. "How Effective are Government R&D Subsidies: The Empirical Evidence," Working Paper Series 187, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0187
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    File URL: https://www.ifn.se/wfiles/wp/wp187.pdf
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    References listed on IDEAS

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    More about this item

    Keywords

    Subsidies; R&D; summary;
    All these keywords.

    JEL classification:

    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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