The Impact of R&D Subsidies on Labor Productivity

Pajarinen MikaRouvinen Petri

Abstract

We summarize and compare previous studies considering the impact of R&D subsidies on firm-level labor productivity. These studies conclude quite consistently that the subsidies provided by Tekes do not have statistically significant impact on its client firms’ labor productivity. These studies go astray from the outset, however, as they neither measure what Tekes is set out to do nor correspond to its stated missions. Furthermore, serious methodological issues remain unaddressed both by these studies and by the literature at large. Our findings call for extensive effort in developing a more appropriate tool box for evaluating the impacts of innovation policy.

Information om publikationen

Serie
ETLA Raportit - Reports 35
Datum
23.10.2014
Nyckelord
Tekes, R&D subsidies, Productivity, Policy evaluation
ISSN
2323-2455, 2323-2447
JEL
L52, L53, O25
Sidor
22
Språk
Finska