The impact of R&D policies: A review of recent studies

Abstract

In this paper, I review the empirical literature of the last 20 or so years on the impact of public support to R&D, focusing on direct R&D subsidies and on R&D tax credits. The review considers both the impacts on R&D inputs, meaning private R&D expenditures, and outputs, such as patenting activity and productivity growth. In the survey, I include both macro-level studies, which examine the effects of public R&D support at the aggregate level, and micro-level analyses, which evaluate the impacts on firm- and worker-level outcomes. The studies covered in the review indicate a strong effectiveness of public R&D policies in stimulating private R&D activity. The effects on innovation and productivity are more uncertain, and might take long to materialize, but most of the works considered gave a positive assessment of public support to R&D.

• ISSN: 2984-2158 (verkkojulkaisu)
• ISBN: 978-952-209-243-4 (verkkojulkaisu)
• JEL: O30, O31, O32, O38
• Press Release in Finnish
• Publication in PDF-format