Abstract
This paper employs the latest analytical technique of the Sharp regression discontinuity (RD) design to re-evaluate the R&D subsidy program implemented in northern Italy. We find that the program did not exert an impact on firms’ investment, regardless of their sizes. Our results are in contrast to those of Bronzini and Iachini (2014) implying that the subsidy generated additional investment for small firms. The general nonexistent impact raises serious doubts as to the efficiency of the program and its procedures of scoring and approving grants.
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Notes
- 1.
See Cattaneo et al. (2019) for more detail.
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The author is very grateful to anonymous referees for their valuable comments.
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Van Le, C. (2022). Incentives for R&D in Northern Italy Revisited. In: Ngoc Thach, N., Kreinovich, V., Ha, D.T., Trung, N.D. (eds) Financial Econometrics: Bayesian Analysis, Quantum Uncertainty, and Related Topics. ECONVN 2022. Studies in Systems, Decision and Control, vol 427. Springer, Cham. https://doi.org/10.1007/978-3-030-98689-6_53
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DOI: https://doi.org/10.1007/978-3-030-98689-6_53
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