Title: Business R&D and the interplay of R&D subsidies and product market uncertainty
Authors: Czarnitzki, Dirk ×
Toole, A.A. #
Issue Date: 2007
Publisher: Kluwer Academic Publishers
Series Title: The review of industrial organization vol:31 issue:3 pages:169-181
Abstract: This paper examines the effect of product market uncertainty and government research and development (R&D) subsidies on firm-level R&D investment. Using a sample of German manufacturing firms, we find that product market uncertainty reduces R&D investment and government R&D subsidies increase R&D investment. Moreover, our results indicate that R&D subsidies mitigate the effect of product market uncertainty on R&D investment. These findings suggest that public policies aimed at increasing business R&D investment can achieve this objective by reducing the degree of uncertainty in the product market.
ISSN: 0889-938X
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Department of Managerial Economics, Strategy and Innovation (MSI), Leuven
× corresponding author
# (joint) last author

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