&D subsidies instead crowd-out private investments in R&D and fail to generate long-term productivity gains. Likewise, patent … high-income country. Government intervention, either through subsidies or state ownership of firms, has often resulted in … increase in innovation activity, productivity growth in the overall economy and manufacturing industries fell by half or more …

The paper analyses the causal effect of capital subsidies on firms' efficiency and productivity by exploiting the … allocating subsidies to projects allows us to use a regression discontinuity design (henceforth RDD). We show that a suitable … evolves over time, enabling to decompose productivity changes into the change in technical efficiency (i.e., measuring the …