Relying on firm-level data from China, this paper combines matching techniques with a structural framework to study the effects of public subsidies across multiple stages of innovation and the implications for productivity. The findings reveal that public subsidies reduce firms' economic...

We investigate the role of public funding in the rapid ascent of Chinese science by examining the impact of a major upgrade of a funding program of China's National Natural Science Foundation in 2011. Using research grant level data and a difference-in-differences estimator, we found that the...