Estimating the benefits of targeted R&D subsidies

Tuomas Takalo, Tanja Tanayama, Otto Toivanen

Forskningsoutput: TidskriftsbidragArtikelVetenskapligPeer review

66 Citeringar (Scopus)


We study the expected welfare effects of targeted R&D subsidies using project-level data from Finland. We model the application and R&D investment decisions of firms and the subsidy-granting decision of the public agency in charge of the program. Our model and institutional environment allow us to identify different benefits and costs of the R&D subsidy program. We find that expected effects of subsidies are very heterogeneous and estimated application costs low on average. The social rate of return on targeted subsidies is 30% to 50%, but spillover effects of subsidies are smaller than effects on firm profits.
Referentgranskad vetenskaplig tidskriftReview of Economics and Statistics
Sidor (från-till)255-272
Antal sidor18
StatusPublicerad - 01.03.2013
MoE-publikationstypA1 Originalartikel i en vetenskaplig tidskrift


  • 511 Nationalekonomi


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