We develop and implement a new method for identifying wasted subsidies, and use it to provide systematic evidence on …

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 positive output effects of both purely privately funded and subsidy …