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Public Funding of R&D and Growth: Firm-Level Evidence from Finland

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This study considers employment and productivity growth generated by the public funding of R&D using linked employer-employee data in Finland. Public subsidies, instrumented by available public R&D funding in the industry/region, have a positive effect on productivity growth in small and medium-sized firms and in firms close to the top of their field in productivity.
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Keywords: Endogenous growth; Linked employer-employee data; Public expenditures; R&D

Document Type: Research Article

Affiliations: The Research Institute of The Finnish Economy ETLA, Helsinki, Finland

Publication date: 2007-04-01

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