| By: |
Aurélien Quignon;
Nadine Levratto |
| Abstract: |
This paper seeks to estimate the effect of a European policy that subsidizes
innovation investments. By carefully selecting observables, we compare
recipients of the program with non-recipient firms to overcome the endogeneity
of R&D grants. We conduct a difference-in-differences design on the universe
of a unique firm-level dataset of European SMEs between 2008 and 2017. We find
a significant effect of proof of concept grants, which implies an increase in
the number of patentapplications and the probability of patenting. There are
positive impacts on credit financing, which suggest a signal effect to
investors about the project quality of young firms. |
| Keywords: |
R&D subsidies, Innovation, Patent, Financing constraints, H2020 |
| JEL: |
G28 G32 O30 O38 |
| Date: |
2021 |
| URL: |
https://d.repec.org/n?u=RePEc:drm:wpaper:2021-34 |