Impact of Public R&D Financing on Private R&D: Does Financial Constraint Matter?. CEPS ENEPRI Working Papers No. 30, 1 February 2005

Ali-Yrkko, Jyrki. (2005) Impact of Public R&D Financing on Private R&D: Does Financial Constraint Matter?. CEPS ENEPRI Working Papers No. 30, 1 February 2005 .

Abstract

This study analyses how public R&D financing impacts companies. Our main goal is to study whether public and private R&D financing are substitutes or complements, and whether this impact differs between financially constrained and unconstrained companies. Our company-level panel data cover the period from 1996 to 2002. The statistical method employed in the research takes into account the possibility that receiving public support may be an endogenous factor. Our results suggest that public R&D financing does not crowd out privately financed R&D. Instead, receiving a positive decision to obtain public R&D funds increases privately financed R&D. Furthermore, our results suggest that this additionality effect is bigger in large firms than in small firms.

Item Type:	Working Paper
Remote Resource Image:
Public Domain:	No
Refereed:	No
Status:	Published
Authors, Individual:	Ali-Yrkko, Jyrki.
Title:	Impact of Public R&D Financing on Private R&D: Does Financial Constraint Matter?. CEPS ENEPRI Working Papers No. 30, 1 February 2005
Language:	English
Institution:	Centre for European Policy Studies (Brussels)
Journals and Series:	Series > Centre for European Policy Studies (Brussels) > ENEPRI Working Papers
Pages:	17
Month:	February
Year:	2005
Subjects:	EU policies and themes > Policies & related activities > RTD policy/European Research Area EU policies and themes > Policies & related activities > economic and financial affairs > business/private economic activity EU policies and themes > Policies & related activities > budgets & financing
Keywords:	Companies.
Alternative Locations:	http://shop.ceps.be/BookDetail.php?item_id=1195
ID Code:	6736
Deposited By:	Wilkin, Phil
Deposited On:	31 March 2007