This paper looks at the effectiveness of R&D grants for Canadian plants
that already benefit from R&D tax credits. Using a non-parametric
matching estimator, we find that firms that benefited from both policy
measures introduced more new products than their counterparts that only
benefited from R&D tax incentives. They also made more world-first
product innovations and were more successful in commercializing their
Keywords: Innovations, R&D, Matching estimators, Mahalanobis, Innovation survey, Tax credits, Grants.
UNU-MERIT Working Papers ISSN 1871-9872