The Possible Adverse Impact of Innovation Subsidies: Some Evidence from Italy

Alessandra Catozzella, Marco Vivarelli

Risultato della ricerca: Contributo in rivistaArticolo in rivistapeer review

20 Citazioni (Scopus)


The impact of public funding on innovative productivity is estimated using a sample of Italian firm-level data (CIS3). A bivariate endogenous switching model is developed in order to free the analysis of the sources of sample selection and firm heterogeneity, the possible simultaneity between subsidy allocation and the qualitative composition of the innovative output, as well as the endogeneity of public support with respect to innovative performance. Results show that innovative productivity is negatively affected by the subsidy; as a result of government intervention, supported firms appear to exhaust their advantage through merely increasing their innovative expenditures.
Lingua originaleEnglish
pagine (da-a)351-368
Numero di pagine18
RivistaInternational Entrepreneurship and Management Journal
Stato di pubblicazionePubblicato - 2016


  • Bivariate endogenous switching model
  • Innovation subsidy
  • Policy evaluation
  • Product innovation


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