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Wiley InterScience | ||||||||
  EconomicaVolume 74 Issue 294, Pages 215 - 234 Published Online: 19 Sep 2006 © 2010 The London School of Economics and Political Science
Abstract | References | Full Text: HTML, PDF (Size: 164K) | Related Articles | Citation Tracking  The Effect of R&D Subsidies on Private R&D Copyright © The London School of Economics and Political Science 2006 ABSTRACTThis paper investigates the relationship between government support for R&D and R&D expenditure financed privately by firms using a comprehensive plant level data set for the manufacturing sector in the Republic of Ireland. We find that for domestic plants small grants serve to increase private R&D spending, while too large a grant may crowd out private financing of R&D. In contrast, evidence for foreign establishments suggests that grant provision causes neither additionality nor crowding out effects of private R&D financing, regardless of the size of the subsidy. Final version received 26 January 2006. | 
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