Research and product or process development are two distinct, yet complementary innovation activities. Making use of a specific grant-based policy design that explicitly distinguishes between research projects, development projects, and mixed R&D projects, this study estimates the direct and cross scheme effects on research and development investments of recipient firms. Positive cross scheme effects can be expected when research and development activities are complementary and financing constraints are more binding for research than for development projects. The results show that while research grants yield positive direct effects on net research spending as well as positive cross effects on development, development grants are less effective. The positive effect of development grants on overall R&D stems from cross effects of development grants on research expenditures. These results suggest a higher priority for subsidies targeting research projects.
About the speaker
Cindy Lopes-Bento received her Ph.D. from K.U. Leuven holds an advanced degree in ecomonics from the Université Chatolique de Louvain-la-Neuve. Her main research interests are industrial organization, applied microeconometrics and the economics of innovation. Her research interests center in particular around innovation policies and the economics of technological change and firm performance with a particular focus on R&D collaboration and knowledge search strategies. Currently, she holds an assistant professor position at the School of Business and Economics at Maastricht University. Prior to that position, she held a post-doctoral researcher position at KU Leuven, financed through the National Research Fund, cofounded under the Marie Curie Actions of the European Commission (FP7-COFUND-4783141).
Venue: Conference room (room 0.16 & 0.17)
Date: 12 January 2017
Time: 12:00 - 13:00