This paper examines the effects of public subsidies across several dimensions of innovation and the implications for … productivity. As an identification strategy, panel data is used to estimate a structural innovation model that controls for …-subsidized firms. The findings reveal that public subsidies reduce firms' economic performance in lower and higher technology industries …

effects of public subsidies across multiple stages of innovation and the implications for productivity. The findings reveal … that public subsidies reduce firms' economic performance despite promoting indigenous innovation, at least in the higher …