Busom, Isabel; Corchuelo, Beatriz; Martinez Ros, Ester - United Nations University-Maastricht Economic Research … - 2012
This paper studies whether firms' use of R&D subsidies and R&D tax incentives are correlated to two sources of underinvestment in R&D, financing constraints and appropriability. We find that financially constrained SMEs are less likely to use R&D tax credits and more likely to obtain subsidies....