Does the effect of public support for R&D depend on the degree of appropriability?

We explore the interaction between public support for R&D and appropriability using a dataset constructed from the Spanish Community Innovation Survey, for the period 2000-2005. We find that public support policy is less able to stimulate privately financed internal R&D in firms where approp...

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Bibliographic Details
Published in:The Journal of industrial economics 2009-12, Vol.LVII (4), p.736-767
Main Authors: Gelabert, Liliana, Fosfuri, Andrea, Tribó, Josep A
Format: Article
Language:English
Subjects:
Industrial economics
Industrial organization
Innovation
Local finance
Public sector
Research and development
Spain
Online Access:Get full text
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Summary:We explore the interaction between public support for R&D and appropriability using a dataset constructed from the Spanish Community Innovation Survey, for the period 2000-2005. We find that public support policy is less able to stimulate privately financed internal R&D in firms where appropriability mechanisms are more effective. On average, the effect of public support for R&D is three times larger for those firms reporting a level of appropriability below the median vis-à-vis those firms for which appropriability is above the median level. Furthermore, for supported firms with the highest degree of appropriability, crowding out cannot be ruled out. Reprinted by permission of Blackwell Publishers
ISSN:0022-1821