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In recent times the service sector is often called the driving force of today's economies. This paper analyses the innovative activities of German service firms. We investigate whether firms that receive public subsidies for innovation projects engage more in innovative activities than others....
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2011. The analysis is based on a structural model of the R&D subsidy process which allows to estimate the benefits of R … of the subsidy on the federal government’s utility as well as on firm profits. Assuming a welfare-maximizing federal … profits are similar to effects on spillovers to the rest of the German economy. Besides results show that the subsidy rate …
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obstacles faced by SME in carrying out research and development (R&D). Using data from 911 firms surveyed in 2006, the results …
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