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R&D and Subsidies at the Firm Level: An Application of Parametric and Semi-Parametric Two-Step Selection Models
The paper analyzes the effects of public subsidies on research and development (R&D) expenditure in the German manufacturing sector. The focus is on the question whether public R&D funding stimulates or crowds out private investment.
ftp://ftp.zew.de/pub/zew-docs/dp/dp0363.pdf