Author (Corporate) | European Commission: DG Economic and Financial Affairs |
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Series Title | European Economy: Economic Papers |
Series Details | No.482, April 2013 |
Publication Date | April 2013 |
ISBN | 978-92-79-28564-6 |
ISSN | 1725-3187 |
EC | KC-AI-13-482-EN-N |
Content Type | Journal | Series | Blog, Report |
This paper establishes theoretically a link between investments in economic growth and investments in R and D. This raises the importance of innovation policies as they are designed to narrow the gap between the socially optimal and the privately optimal levels of R and D. As innovation policies may be subject to crowding-out effects, we, second, empirically test whether R and D subsidies stimulate private investment in two countries of the European economic area. We employ Belgian and German firm level data for estimating treatment effects models. It turns out that public R and D grants stimulate private investments in both countries. Furthermore, the estimated treatment effects vary with the innovation experience of firms and their past labor productivity. |
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Source Link | Link to Main Source http://ec.europa.eu/economy_finance/publications/economic_paper/2013/ecp482_en.htm |
Related Links |
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Subject Categories | Politics and International Relations |
Countries / Regions | Belgium, Europe, Germany |