Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/272406 
Year of Publication: 
2022
Series/Report no.: 
IZA Discussion Papers No. 15779
Publisher: 
Institute of Labor Economics (IZA), Bonn
Abstract: 
This paper investigates the effect of awarding a second investment grant to the same firm. We implement a Regression Discontinuity Design strategy using a very rich firm-level administrative database, which allows us to link applications to grants and their scores to firms' performance. Overall, our results show a positive and significant impact of an investment grant booster shot on firms' labour productivity. This effect is significantly larger than the effect of a single grant. A more granular analysis shows a strong impact of awarding a second grant to small-sized firms. However, we found no effect on micro, medium and large-sized firms. Our results suggest that the characteristics of the targeted firms, namely firm size, matter for the effectiveness of awarding a second grant to the same firm.
Subjects: 
industrial policy
investment grants
multiple treatments
productivity
JEL: 
D22
H25
L25
L52
Document Type: 
Working Paper

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