Economics, Econometrics and Finance
4 years ago

R&D subsidies boost small firms but hinder large firms in Israel.

Journal of Industrial Economics
Do R&D Subsidies Stimulate or Displace Private R&D? Evidence from Israel
Saul Lach

Paper Summary

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R&D subsidies in Israel boosted small firms' own R&D spending significantly, but had a less clear impact on large firms. Small firms saw a big increase in R&D spending for each subsidy received, while large firms didn't show a significant change. Overall, small firms benefited more from the subsidies than large firms did.