NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Trinh Le

Motu Economic and Public Policy Research
PO Box 24390
Wellington 6142
New Zealand

E-Mail: trinh.le@motu.org.nz

NBER Working Papers and Publications

August 2015The Impact of R&D Subsidy on Innovation: a Study of New Zealand Firms
with Adam B. Jaffe: w21479
This paper examines the impact of government assistance through R&D grants on innovation output for firms in New Zealand. Using a large database that links administrative and tax data with survey data, we are able to control for large number of firm characteristics and thus minimise selection bias. We find that receipt of an R&D grant significantly increases the probability that a firm in the manufacturing and service sectors applies for a patent during 2005–2009, but no positive impact is found on the probability of applying for a trademark. Using only firms that participated in the Business Operation Survey, we find that receiving a grant almost doubles the probability that a firm introduces new goods and services to the world while its effects on process innovation and any product innov...
 
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