staggered adoption of state-level R&D tax credits in the United States to examine their effect on innovation itself. In …

This paper tries to account for impact from both R&D tax incentives and subsidies policies on firm innovation in China … simultaneously rather than separately, measuring firm innovation by input and output proxies, namely “R&D investment” and “number of … patents application”. We use a firm-level survey data from Shanghai, China, and combine the propensity score matching method …

We provide comparative evidence on R&D tax credit and subsidy programs by studying whether firms' participation in each … program participation. We find that true state dependence of participation in R&D subsidy and tax credit programs accounts …

tax rates and can thereby provide a subsidy to unprofitable projects. We assess the specific design features of different …

&D subsidies is 1.15, i.e., a oneunit increase in subsidy increases total R&D expenditure in the recipient firm by somewhat more … than a unit. We demonstrate, however, that there is measurement error in the subsidy variable. Additionality is therefore …