Measuring the Impact of R&D&I Subsidies on Innovative Inputs and Outputs in Polish Manufacturing Firms

Abstract

AbstractThis research investigates the impact of R&D and innovation (R&D&I) subsidies on the innovative inputs and outputs of Polish manufacturing companies. We combine unique survey data that incorporates a representative sample of Polish manufacturing companies with data on the state aid from the State Aid Data Sharing System (SUDOP). Our results confirm the positive role of R&D&I subsidies on the likelihood of applying for a patent, filing for intellectual property protection for utility models, industrial designs, trademark registrations, and the introduction of process innovations, consistent with the existing literature. However, the results also indicate an insignificant impact of the intervention on firms’ R&D expenditures and product innovations. The extension of the analysis with the moderating effects of internal factors that affect the firms’ innovative behavior indicates that the R&D&I subsidies for exporters lead to the crowding-out effect and for non-exporters generate additional R&D expenditures and increase the propensity for R&D cooperation. Furthermore, R&D&I support for enterprises with foreign ownership reduces their propensity for patent applications and product innovations. In contrast, for beneficiaries with a predominance of domestic capital, it positively impacts many output variables.