Statistical Analysis of R&amp;D Funding in the Czech Republic

Petkovová, Ludmila; Čadil, Jan; Mirošník, Karel; Rehák, Ján

doi:10.1016/s2212-5671(15)01285-x

Cited by 2 publications

(1 citation statement)

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“…These subsidies from the government are mainly used for training and development of scientists and engineers at research institutions which stimulate the private R&D. Gonzales and Pazo (2008) and Gorg and Strobl (2007) used matching propensity score for Spanish and Irish manufacturing firms, and also examined that firms with R&D subsidies and grants accelerate the private R&D. They found the complementary association between public and private R&D. 1 In addition, Lach (2002) conducted a panel study on Israeli manufacturing firms and found public R&D stimulate private R&D for small firms. Time series analysis used by Petkovova, Cadil, Mirosnik, and Rehak (2015) on Czech Republic firms showed positive association between public R&D and private R&D and suggested that private sector generate more innovation with government funded R&D programs in the 2010-2013 period. Concerning the services sector, the study of Czarnitzki and Fier (2001) also supported the complementary relationship between public and private R&D for German firms.…”

Section: Micro Level Evidencesmentioning

confidence: 99%

Does public R&D complement or crowd-out private R&D in pre and post economic crisis of 2008?

Rehman

Hysa

Mao

2020

Journal of Applied Economics

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Research and development expenditure (R&D) generate innovation and contribute significantly to the economic development. Previous studies emphasized the role of public R&D to encourage the technological innovation in the private sector. However, the effect of global economic crisis with respect to the public and private R&D link has been somewhat neglected in the empirical literature. Based on system GMM estimation, we found that public R&D complements private R&D in pre and post economic crisis. However, the strength of their complementary association is found strong in pre-economic crisis. In sum, the results indicate that continuous support to public R&D in pre and post economic crisis accelerate the technological innovation in the private sector. This study implies that public support to R&D is a good strategy for an economy to confront economic crisis effectively by increasing the technological innovation in the private sector. For policy makers, it is suggested that care must be taken while investing in the R&D, the investment is to be based on the ratio between R&D expenditure to number of R&D workers.

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