Are Incentives for R&D Effective? Evidence from a Regression Discontinuity Approach

• 成果类型: Article
• 署名作者: Bronzini, Raffaello; Iachini, Eleonora
• 署名单位: European Central Bank; Bank of Italy; European Central Bank; Bank of Italy
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.6.4.100
• 发表日期: 2014
• 页码: 100-134
• 关键词: development subsidies; innovation activities; cash flow; IMPACT; GOVERNMENT; BEHAVIOR; size; constraints; selection; benefits

摘要

This paper evaluates a unique R&D subsidy program implemented in northern Italy. Firms were invited to submit proposals for new projects and only those which scored above a certain threshold received the subsidy. We use a sharp regression discontinuity design to compare the investment spending of subsidized firms with that of unsubsidized firms. For the sample as a whole we find no significant increase in investment. This overall effect, however, masks substantial heterogeneity in the program's impact. We estimate that small enterprises increased their investments-by approximately the amount of the subsidy they received-whereas larger firms did not.