This paper integrates innovation input and output effects of R&D subsidies into a modified Crépon–Duguet–Mairesse (CDM) model. Our results largely confirm insights of the input additionality literature, i.e. public subsidies complement private R&D investment. In addition, results point to...

The correlation among agglomeration, externalities, and human capital growth is a question that requires extensive empirical and analytical investigation. This article hypothesizes that entities that cluster in geographic space take advantage of external economies and develop more rapidly than...

The effects of public subsidies in supporting private innovative activity is subject to longstanding political and scientific debates. Since the empirical findings remain largely inconclusive, this study adds to this debate with counterfactual evidence from a laboratory experiment. In a creative...