Discussion Paper
No. 2018-37 |
May 09, 2018
Are R&D subsidies effective? The effect of industry competition
Abstract
This study explores the effect of industry competition on public R&D subsidies’ effectiveness. The author finds the non-linear threshold effect of industry competition on R&D subsidies’ effectiveness. Specifically, R&D subsidies’ effectiveness reaches its peak when industry competition lies between the two estimated thresholds.
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