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Article: The effects of public R&D subsidies on firms' innovation activities: the case of Eastern Germany.
- Article from:
- Journal of Business & Economic Statistics
- Article date:
- April 1, 2003
- Author:
CopyrightCOPYRIGHT 2003 American Statistical Association. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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This study analyzes the effects of public R&D policy schemes on the innovation activities of firms in Eastern Germany. The main question in this context is whether public funds stimulate R&D activities or simply crowd out privately financed R&D. Empirically, we investigate the average causal effects of all public R&D schemes in Eastern Germany using a nonparametric matching approach. Compared to the case in which no public financial means are provided, it turns out that firms increase their innovation activities by about four percentage points.
KEY WORDS: Nonparametric matching; Public innovation subsidies.
1. INTRODUCTION
In 1998, the German ...