Journal
REVIEW OF ECONOMICS AND STATISTICS
Volume 96, Issue 4, Pages 710-728Publisher
MIT PRESS
DOI: 10.1162/REST_a_00410
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Funding
- ESRC [ES/H02123X/1] Funding Source: UKRI
- Economic and Social Research Council [ES/H02123X/1] Funding Source: researchfish
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Despite the prevalence of R&D support programs, evaluation studies based on explicit differences in support allocation are rare. In this paper, the identification of the causal effect of R&D support on company performance is based on geographic variation in government funding arising from a population-density rule. I find positive impacts on R&D investment, employment, and sales among the participants who were granted an R&D subsidy as a result of additional aggregate R&D support funding in their region. Although there are no instantaneous impacts on productivity, the study provides evidence of long-term productivity gains.
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