.S. economy during the last 40 years. In this paper, we replicate their findings for China and Germany, using detailed firm …

In evaluating the effectiveness of R&D subsidies, the literature has focused on potential crowding out effects, while … period 2001-2011, we show that misappropriation is a major threat. 42% of grantees misused R&D subsidies for non …-research purposes, accounting for 53% of the total amount of R&D subsidies. In a second step, we study the loss of effectiveness of R …

We investigate the misappropriation of R&D subsidies and evaluate its consequences for policy effectiveness. Using … Chinese firm-level data for 2001-2011, we identify that 42% of grantees misused R&D subsidies, accounting for 53% of total R …&D subsidies. Misappropriation leads to a substantial loss of the causal impact of R&D subsidies, as measured by the difference of …

We investigate the impact of research and development (R&D) subsidies on R&D inputs of large- and medium-sized firms … to total effects. We find that an increase of R&D subsidies significantly decreases private R&D investments, although …. Interestingly, we also find potentially unintended effects of R&D subsidies on increases in the investment rate in physical capital …