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R&D Subsidy and Self-Financed R&D: The Case of Japanese High-Technology Start-Ups

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Abstract

This paper examines whether public R&D subsidies constitute a substitute or complement for private-financed R&D. The empirical analysis is based on a panel data of 223 Japanese high-technology start-ups. Our evidence is consistent with the complement hypothesis, i.e., that publicly-funded R&D does promote private R&D. The complement effects are stronger for more mature firms. This is because such firms, in the growth phase, might have greater demands for R&D funds.

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Authors and Affiliations

  1. National Institute of Science and Technology Policy, (NISTEP), 1-3-2 Kasumi-gaseki, Chiyoda-ku, 100-0013, Tokyo, Japan

    Tadahisa Koga

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  1. Tadahisa Koga
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Koga, T. R&D Subsidy and Self-Financed R&D: The Case of Japanese High-Technology Start-Ups. Small Bus Econ 24, 53–62 (2005). https://doi.org/10.1007/s11187-005-3096-z

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  • DOI: https://doi.org/10.1007/s11187-005-3096-z

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