Are R&D subsidies effective? The effect of industry competition

Abstract

In this study, the author explores the effect of industry competition on public R&D subsidy effectiveness. He finds a non-linear threshold effect of industry competition on R&D subsidy effectiveness. Specifically, R&D subsidy effectiveness reaches its peak when industry competition lies between two estimated thresholds.

Keywords

• industry competition
• r[amp]d subsidy
• complement effect
• threshold regression
• h25
• l11
• g31
• g38