How cost-effective is public R&D in stimulating firm innovation?

Hug, Leonie and Simmler, Martin (2018) How cost-effective is public R&D in stimulating firm innovation? Centre for Business Taxaton.

[img]
Preview
PDF - Published Version
Download (1MB) | Preview

Abstract

This paper assesses the impact of public R&D on firm R&D using patent application data on the county and firm level in Germany. We address the endogeneity of public R&D by employing an instrumental variable estimator that uses lagged institutional funding for research institutes and universities as excluded instruments. We find that one additional public patent application generates 3.5 firm patent applications in the median county, but also that the relationship turns negative for high levels of public R&D. We estimate the public costs per firm patent to be between 0.8 and 1.5 million EURO.

Item Type: Other Working Paper
Keywords: R&D, university, research institutes, public spending
Subject(s): Taxation
Centre: Oxford University Centre for Business Taxation
Date Deposited: 13 Dec 2018 16:40
Last Modified: 13 Dec 2018 16:40
Funders: German Research Foundation
URI: http://eureka.sbs.ox.ac.uk/id/eprint/7201

View statistics

Actions (login required)

Edit View Edit View