Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/24518 
Year of Publication: 
2006
Series/Report no.: 
ZEW Discussion Papers No. 06-063
Publisher: 
Zentrum für Europäische Wirtschaftsforschung (ZEW), Mannheim
Abstract: 
In this paper we empirically test whether public R&D subsidies crowd out private R&D investment in Flanders and Germany, using firm level data from the Flemish and German part of the Community Innovation survey (CIS III and IV). Both the non-parametric matching estimator and the conditional difference-in-difference estimator with repeated cross-sections (CDiDRCS) clearly indicate that the crowding-out hypothesis can be rejected: funded firms are significantly more R&D active than non-funded firms. In the domain of additionality effects of R&D subsidies, this paper is the first to apply the CDiDRCS method.
Subjects: 
R&D
Subsidies
Policy Evaluation
Conditional Difference-in-Difference
JEL: 
O38
H50
C21
C14
Document Type: 
Working Paper

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