@techreport{f071aeef87cc47c68a69e1142e990175,
title = "Promoting Innovation: The Differential Impact of R&D Subsidies",
abstract = "We investigate the effect of R&D subsidies on firms{\textquoteright} innovation by ownership, industry, and firm size using German firm-level data. The impact of R&D subsidies is heterogeneous across industries for multinational corporations (MNCs) and domestic firms while it does not differ substantially by firm size. Domestic firms have a larger response in R&D spending in low-tech manufacturing, knowledge-intensive services, and technological services while the response of domestic and foreign MNCs is broadly similar and is greater in medium-tech and high-tech manufacturing. Foreign MNC subsidiaries{\textquoteright} response in terms of patents is greater than that of domestic MNCs in most industries.",
keywords = "Innovation, Patents, Research and development, R&D, Subsides, Multinationals, Investments, Technology policy, Innovation, Patents, Research and development, R&D, Subsides, Multinationals, Investment, Technology policy",
author = "Reda Cherif and Fuad Hasanov and Christoph Grimpe and Wolfgang Sofka",
year = "2022",
language = "English",
series = "IMF Working Paper",
publisher = "International Monetary Fund",
type = "WorkingPaper",
institution = "International Monetary Fund",
}