Original title: Are subsidies to business R&D effective? Regression discontinuity evidence from the TA CR ALFA programme
Authors: Bajgar, Matěj ; Srholec, Martin
Document type: Research reports
Year: 2023
Language: eng
Series: Studie IDEA, volume: 7/2023
Abstract: Governments subsidise business research and experimental development (R&D) to promote development of the economy, because externalities and information asymmetries inherent to the innovation process make private funding of these activities fall short of what is socially desirable. Nevertheless, how effective such subsidies are and whether they achieve their goals is an open question that needs to be studied empirically. This study leverages the state-of-the-art method of regression discontinuity (RD) that allows us to come very close to making causal inferences about the effects of subsidies, to find out whether the Technology Agency of the Czech Republic’s (TA CR) ALFA programme stimulated new business R&D inputs, outputs, and positive economic impacts that would not have happened otherwise.
Keywords: economic development; government subsidies; innovations

Institution: Economics Institute AS ČR (web)
Document availability information: Fulltext is available at external website.
External URL: https://idea.cerge-ei.cz/files/IDEA_Studie_07_2023_TACR/files/extfile/IDEA_Studie_07_2023_TACR.pdf
Original record: https://hdl.handle.net/11104/0343749

Permalink: http://www.nusl.cz/ntk/nusl-528163


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