Abstract
In many countries significant amounts of public funding are devoted to
supporting firms’ R&D and innovation projects. Here, using panel data on
the innovation activities of Irish manufacturing firms we examine the legacy
effects of public subsidies for new product development and R&D. We
examine five alternative mechanisms through which such effects may
occur: input additionality, output additionality, and congenital, interorganisational
and experiential behavioural additionality. Tests suggest
contrasting legacy effects with R&D subsidies generating legacy output
additionality effects while new product development subsidies have legacy
congenital and inter-organisational behavioural additionality effects. Our
results have implications for innovation policy design and evaluation.
| Original language | English |
|---|---|
| Place of Publication | Warwick |
| Publisher | Enterprise Research Centre |
| Number of pages | 50 |
| Volume | 21 |
| Publication status | Published - 26 Feb 2016 |