Building on a standard policy evaluation literature mainly aimed at estimating the additional effect of subsidies on … either firms' innovative expenditures or innovative outputs only, this paper tries to move one step further, combining the … simultaneity between subsidy allocation and the qualitative composition of the innovative output, as well as the endogeneity of …

realize benefits from R&D subsidies in terms of innovations. The study considers two dimensions of the firm’s knowledge … R&D subsidies on the knowledge-sourcing process increase firms’ innovation outcomes, thus making this policy … evidence consistent with the hypothesis that by changing the knowledge sourcing of firms, National R&D subsidy programs in …