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http://dx.doi.org/10.5762/KAIS.2010.11.5.1829

The Effects of R&D Public Subsidies on Service Firms' Innovation Activities  

Kim, Sang-Sin (Division of Economics, The University of Seoul)
Publication Information
Journal of the Korea Academia-Industrial cooperation Society / v.11, no.5, 2010 , pp. 1829-1837 More about this Journal
Abstract
During the last year, public expenditures which provided the central and local governments for boosting research and development (R&D) activities of the private sector has been constantly increasing. 17 percent of public total R&D expenditure supported to private sector and 9 percent of R&D expenditure in service sector were public R&D funding. However, studies evaluating the impact of public R&D subsidies are quite few. The aim of this study empirically investigate the average effects of public R&D subsidies on the innovation activities in private sector, specifically those engaged in Korean service firms by using Propensity Score Matching(PSM) method. The effect of R&D subsidies is derived from either qualitative and quantitative outcomes of innovation activities, which is defined as the difference between innovation outcome of the treatment group (receiving R&D subsidies) and that of the control group (non receiving R&D subsidies) after the matching method. As a result of empirical analysis, government R&D grants stimulate only firm-first innovation outcomes in service firms. It is represent that public R&D subsidies cannot be contributed to level of national innovation and the total amount of national innovation activities but can enhance firm competitiveness from increasing firm-first innovation activities.
Keywords
Government R&D Subsidy; Propensity Score Matching; Innovation Activity; R&D;
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Times Cited By KSCI : 1  (Citation Analysis)
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