Takalo, Tuomas; Tanayama, Tanja; Toivanen, Otto - In: The Review of Economics and Statistics 95 (2013) 1, pp. 255-272
We study the expected welfare effects of targeted R&D subsidies using project-level data from Finland. We model the … 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 …