- A-Z
- Jena Economic Resea...
- Volume 3
- Picking the Winner?...
- Autor(in)
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Friedrich-Schiller-Universität Jena. Wirtschaftswissenschaftliche Fakultät
- Erschienen
- 9. November 2009
- Nummer des Discussion-Papers
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2009-093
- Schlagwort(e)
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R&D subsidies
Start-ups
Subsidy allocation
- Zusammenfsg.
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This paper investigates the allocation of R&D subsidies given to start-ups. Considering the coexistence of various R&D project schemes, we take an aggregate view and analyze the determinants of the receipt of (any) R&D subsidies within the first three business years of the start-ups. We argue that policymakers and funding authorities follow a strategy of “picking the winner”. Analyzing a unique data set of start-ups in the East German state of Thuringia, we conduct logistic regressions and find ambiguous support. R&D subsidies are given to start-ups with innovative business ideas, especially academic spin-offs. On the other hand, the ambitions and the patent stock of the founder(s) do not decide the receipt of R&D subsidies. These insights into the overall allocation of R&D subsidies are important since they have implications for policy effectiveness and efficiency. The implied difficulties of policy targeting fundamentally question the massive subsidization of private R&D.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- article research fields JER
- entrepreneurship
- JEL-Classification for JER
- O38 - Government Policy ; L26 - Entrepreneurship ; L52 - Industrial Policy; Sectoral Planning Methods