Do Subsidies Have Positive Impacts upon R&D and Innovation Activities at the Firm Level?

This research paper looks at the impact of R&D subsidies on Norwegian firms from the European Union and Norway. Subsidies are labeled as either "close to market" or "far from market", and it is found that "far from market" subsidies stimulate private R&D spending, and "close to market" subsidies substitute for private R&D spending.