es

IEB

Universitat de Barcelona logotipo
Working paper
Ciudades
Pere Arqué-Castells, Pierre Mohnen

2012/13 : Sunk costs, extensive R&D subsidies and permanent inducement effects

We study whether there is scope for using subsidies to smooth out barriers to R&D performance and expand the share of R&D firms in Spain. We consider a dynamic model with sunk entry costs in which firms’ optimal participation strategy is defined in terms of two subsidy thresholds that characterise entry and continuation. We compute the subsidy thresholds from the estimates of a dynamic panel data type-2 tobit model for an unbalanced panel of about 2,000 Spanish manufacturing firms. The results suggest that “extensive” subsidies are a feasible and efficient tool for expanding the share of R&D firms.



Download PDF

Esta web utiliza cookies para personalizar la navegación y mejorar sus servicios. Si continúa navegando, usted acepta su uso de conformidad con nuestra política de cookies. Ver más información