Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/283280 
Year of Publication: 
2023
Series/Report no.: 
wiiw Working Paper No. 237
Publisher: 
The Vienna Institute for International Economic Studies (wiiw), Vienna
Abstract: 
We test for the role of state aid as a driver of digital competitiveness at the industry level, focusing on the digital factor content of trade. Results show that state aid may increase digital competitiveness, particularly in R&D-intensive industries and in relation to the export of (digital) capital-intensive goods and services. Interestingly, aggregate state aid appears to be more effective than specific R&D funds in explaining the performance of country-industries in foreign markets.
Subjects: 
Factor content of trade
ICT capital
state aid
sectoral R&D capability
JEL: 
F14
O30
Document Type: 
Working Paper

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