The Effect of Government Subsidy on Non-Technological Innovation and Firm Performance in the Service Sector: Evidence from Germany

1. Albors-Garrigos, J., Barrera, R. R. (2011), “Impact of Public Funding on A Firm's Innovation Performance: Analysis of Internal and External Moderating Factors”, International Journal of innovation management, Vol. 15, No. 6, pp. 1297-1322.10.1142/S136391961100374XSearch in Google Scholar

2. Almus, M., Czarnitzki, D. (2003), “The effects of public R&D subsidies on firms' innovation activities: the case of Eastern Germany”, Journal of Business & Economic Statistics, Vol. 21, No. 2, pp. 226-236.10.1198/073500103288618918Open DOISearch in Google Scholar

3. Arvanitis, S., Woerter, M. (2013), “Firm characteristics and the cyclicality of R&D investments”, Industrial and Corporate Change, Vol. 23, No. 5, pp. 1141-1169.10.1093/icc/dtt013Open DOISearch in Google Scholar

4. Atalay, M., Anafarta, N., Sarvan, F. (2013), “The relationship between innovation and firm performance: An empirical evidence from Turkish automotive supplier industry”, Procedia-Social and Behavioral Sciences, Vol. 75, pp. 226-235.10.1016/j.sbspro.2013.04.026Search in Google Scholar

5. Becheikh, N., Landry, R., Amara, N. (2006), “Lessons from innovation empirical studies in the manufacturing sector: A systematic review of the literature from 1993–2003”, Technovation, Vol. 26, No. 5-6, pp. 644-664.10.1016/j.technovation.2005.06.016Search in Google Scholar

6. Becker, W., Dietz, J. (2004), “R&D cooperation and innovation activities of firms—evidence for the German manufacturing industry”, Research policy, Vol. 33, No. 2, pp. 209-223.10.1016/j.respol.2003.07.003Search in Google Scholar

7. Bérubé, C., Mohnen, P. (2009), “Are firms that receive R&D subsidies more innovative?”, Canadian Journal of Economics/Revue Canadienne d'économique, Vol. 42, No. 1, pp. 206-225.10.1111/j.1540-5982.2008.01505.xSearch in Google Scholar

8. Beugelsdijk, S., Cornet, M. (2002), “’A far friend is worth more than a good neighbor’: proximity and innovation in a small country”, Journal of Management and Governance, Vol. 6, No. 2, pp. 169-188.10.1023/A:1015775321949Search in Google Scholar

9. Bozic, L., Mohnen, P. (2016), “Determinants of innovation in Croatian SMEs–comparison of service and manufacturing firms”, Market/Tržište, Vol. 28, No. 1, pp. 7-27.Search in Google Scholar

10. Branstetter, L. G., Sakakibara, M. (2002), „When do research consortia work well and why? Evidence from Japanese panel data”, American Economic Review, Vol. 92, No. 1, pp. 143-159.10.1257/000282802760015649Search in Google Scholar

11. Bronzini, R., Piselli, P. (2016), “The impact of R&D subsidies on firm innovation”, Research Policy, Vol. 45, No. 2, pp. 442-457.10.1016/j.respol.2015.10.008Search in Google Scholar

12. Buson Piquer, I. (1991), “Impacto de las ayudas públicas a las actividades de I+ D de las empresas: un análisis empírico”, Herri ekonomiaz, No. 11, pp. 47-66.Search in Google Scholar

13. Cainelli, G., Evangelista, R., Savona, M. (2004), „The impact of innovation on economic performance in services”, The Service Industries Journal, Vol. 24, No. 1, pp. 116-130.10.1080/02642060412331301162Search in Google Scholar

14. Caliendo, M., Kopeinig, S. (2008), “Some Practical Guidance for the Implementation of Propensity Score Matching”, Journal of Economic Surveys, Vol. 22, No. 1, pp. 31-72.10.1111/j.1467-6419.2007.00527.xSearch in Google Scholar

15. Carboni, O. A. (2017), “The effect of public support on investment and R&D: An empirical evaluation on European manufacturing firms”, Technological Forecasting and Social Change, Vol. 117, pp. 282-295.10.1016/j.techfore.2016.11.017Search in Google Scholar

16. Cozza, C., Malerba, F., Mancusi, M. L., Perani, G., Vezzulli, A. (2012), „Innovation, profitability and growth in medium and high-tech manufacturing industries: evidence from Italy”, Applied Economics, Vol. 44, No. 15, pp. 1963-1976.10.1080/00036846.2011.556594Open DOISearch in Google Scholar

17. Czarnitzki, D., Fier, A. (2001), “Do R&D subsidies matter?–evidence for the German service sector”, available at: ftp://ftp.zew.de/pub/zew-docs/dp/dp0119.pdf (10 January 2018)10.2139/ssrn.331066Search in Google Scholar

18. Czarnitzki, D., Fier, A. (2002), “Do innovation subsidies crowd out private investment? Evidence from the German service sector”, available at: ftp://ftp.zew.de/pub/zew-docs/dp/dp0204.pdf (10 January 2018)10.2139/ssrn.331066Search in Google Scholar

19. Czarnitzki, D., Hanel, P., Rosa, J. M. (2011), “Evaluating the impact of R&D tax credits on innovation: A microeconometric study on Canadian firms”, Research Policy, Vol. 40, No. 2, pp. 217-229.10.1016/j.respol.2010.09.017Open DOISearch in Google Scholar

20. Czarnitzki, D., Licht, G. (2006), “Additionality of public R&D grants in a transition economy”, Economics of Transition, Vol. 14, No. 1, pp. 101-131.10.1111/j.1468-0351.2006.00236.xSearch in Google Scholar

21. Czarnitzki, D., Lopes-Bento, C. (2014), “Innovation subsidies: Does the funding source matter for innovation intensity and performance? Empirical evidence from Germany”, Industry and Innovation, Vol. 21, No. 5, pp. 380-409.10.1080/13662716.2014.973246Search in Google Scholar

22. Doh, S., Kim, B. (2014), “Government support for SME innovations in the regional industries: The case of government financial support program in South Korea”, Research Policy, Vol. 43, No. 9, pp. 1557-1569.10.1016/j.respol.2014.05.001Search in Google Scholar

23. Duchêne, V., Lykogianni, E., Verbeek, A. (2009), “EU-R&D in Services Industries and the EU-US R&D Investment Gap”. available at: http://iri.jrc.ec.europa.eu/documents/10180/b218443f-8cf0-4c86-b25b-64dce0119ade (10 January 2018)Search in Google Scholar

24. Elche, D. M., González, Á. (2008), „Influence of innovation on performance: analysis of Spanish service firms”, The Service Industries Journal, Vol. 28, No. 10, pp. 1483-1499.10.1080/02642060802250294Search in Google Scholar

25. Fernández, E., Junquera, B., Vazquez, C. (1995), “La política de I + D en la empresa no financier”, Información Comercial Espanola, Vol. 81, pp. 104-117.Search in Google Scholar

26. Gunday, G., Ulusoy, G., Kilic, K., Alpkan, L. (2011), “Effects of innovation types on firm performance”, International Journal of production economics, Vol. 133, No. 2, pp. 662-676.10.1016/j.ijpe.2011.05.014Search in Google Scholar

27. Hall, B. H., Lotti, F., Mairesse, J. (2009), “Innovation and productivity in SMEs: empirical evidence for Italy”, Small Business Economics, Vol. 33, No. 1, pp. 13-33.10.1007/s11187-009-9184-8Search in Google Scholar

28. Haned, N., Mothe, C., Nguyen-Thi, T. U. (2014), “Firm persistence in technological innovation: the relevance of organizational innovation”, Economics of Innovation and New Technology, Vol. 23, No. 5-6, pp. 490-516.10.1080/10438599.2014.895509Search in Google Scholar

29. Hanzl-Weiss, D., Stehrer, R. (2010), „The role of services in the new member states: a comparative analysis based on input-output tables”, The Vienna Institute for International Economic Studies, No. 366.Search in Google Scholar

30. Heckman, J. D., Ichimura, H., Todd P. E., (1997), “Matching as an Econometric Evaluation Estimator: Evidence from Evaluating a Job Training Programme”, Review of Economic Studies, Vol. 64, No. 4, pp. 605-654.10.2307/2971733Open DOISearch in Google Scholar

31. Heckman, J. J., Ichimura, H., Todd, P. (1998), “Matching as an econometric evaluation estimator”, The review of economic studies, Vol. 65, No. 2, pp. 261-294.10.1111/1467-937X.00044Search in Google Scholar

32. Herrera, L., Nieto, M. (2008), “The national innovation policy effect according to firm location”, Technovation, Vol. 28, No. 8, pp. 540-550.10.1016/j.technovation.2008.02.009Open DOISearch in Google Scholar

33. Hussinger, K. (2008), “R&D and subsidies at the firm level: An application of parametric and semiparametric two-step selection models”, Journal of applied econometrics, Vol. 23, No. 6, pp. 729-747.10.1002/jae.1016Open DOISearch in Google Scholar

34. Johne, A., Davies, R. (2000), “Innovation in medium-sized insurance companies: how marketing adds value”, International Journal of Bank Marketing, Vol. 18, No. 1, pp. 6-14.10.1108/02652320010315316Search in Google Scholar

35. Keizer, J. A., Dijkstra, L., Halman, J. I. (2002), „Explaining innovative efforts of SMEs.: An exploratory survey among SMEs in the mechanical and electrical engineering sector in The Netherlands”, Technovation, Vol. 22, No. 1, pp. 1-13.10.1016/S0166-4972(00)00091-2Search in Google Scholar

36. Kim, S. J., Kim, E. M., Suh, Y., Zheng, Z. (2016), „The effect of service innovation on R&D activities and government support systems: the moderating role of government support systems in Korea”, Journal of Open Innovation: Technology, Market, and Complexity, Vol. 2, No. 5, pp. 1-13.10.1186/s40852-016-0032-1Search in Google Scholar

37. Lam, A. (2005), “Organizational Innovation”, Fagerberg, J., Mowery, D. C., Nelson, R. R. (Eds), The Oxford Handbook of Innovation, Oxford University Press, Oxford, pp. 115-147.Search in Google Scholar

38. Le, T., Jaffe, A. B. (2016), „The impact of R&D subsidy on innovation: evidence from New Zealand firms”, Economics of Innovation and New Technology, Vol. 26, No. 5, pp. 429-452.10.1080/10438599.2016.1213504Search in Google Scholar

39. Li, P., Wang, C. H. (2010), “The Nonlinear Study of Public S&T Subsidies to Business Innovation: A Threshold Regression Analysis Based on Panel Data in 2001-2008”, China Soft Science Magazine, Vol. 8, pp. 138-147.Search in Google Scholar

40. Liu, R., Rammer, C. (2016), “The Contribution of Different Public Innovation Funding Programs to SMEs’ Export Performance”, available at: http://ftp.zew.de/pub/zew-docs/dp/dp16078.pdf (10 January 2018)10.2139/ssrn.2878755Search in Google Scholar

41. Lokshin, B., Belderbos, R., Carree, M. (2008), “The productivity effects of internal and external R&D: Evidence from a dynamic panel data model”, Oxford bulletin of Economics and Statistics, Vol. 70, No. 3, pp-399-413.10.1111/j.1468-0084.2008.00503.xOpen DOISearch in Google Scholar

42. Otero-Neira, C., Tapio Lindman, M., Fernández, M. J. (2009), “Innovation and performance in SME furniture industries: An international comparative case study”, Marketing Intelligence & Planning, Vol. 27, No. 2, pp. 216-232.10.1108/02634500910944995Search in Google Scholar

43. Peters, B., Roberts, M. J., Vuong, V. A., Fryges, H. (2013). “Firm R&D, Innovation, and Productivity in German Industry”, Center for European Economic Research (ZEW).Search in Google Scholar

44. Polder, M., Leeuwen, G. V., Mohnen, P., Raymond, W. (2010), „Product, process and organizational innovation: drivers, complementarity and productivity effects”, MERIT Working Papers 035, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology.10.2139/ssrn.1626805Search in Google Scholar

45. Reinkowski, J., Alecke, B., Mitze, T., Untiedt, G. (2010), „Effectiveness of Public R&D Subsidies in East Germany–Is it a Matter of Firm Size?”, available at: http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.408.136&rep=rep1&type=pdf (10 January 2018)Search in Google Scholar

46. Rogers, M. (1998). The definition and measurement of productivity, Melbourne Institute of Applied Economic and Social Research.Search in Google Scholar

47. Romer, P. (1989), “Endogenous technological change”, Journal of Political Economy, Vol. 98, No. 5, pp. 71-102.10.1086/261725Search in Google Scholar

48. Romijn, H., Albaladejo, M. (2002), “Determinants of innovation capability in small electronics and software firms in southeast England”, Research Policy, Vol. 31, No. 7, pp. 1053-1067.10.1016/S0048-7333(01)00176-7Open DOISearch in Google Scholar

49. Rosenbaum, P. R., Rubin, D. B. (1983), „The central role of the propensity score in observational studies for causal effects”, Biometrika, Vol. 70, No. 1, pp. 41-55.10.1093/biomet/70.1.41Search in Google Scholar

50. Rubin, D. (1974), “Estimating Causal Effects of Treatments in Randomized and Non-randomized Studies”, Journal of Educational Psychology, Vol. 66, No. 5, pp. 688-701.10.1037/h0037350Open DOISearch in Google Scholar

51. Sandvik, I. L., Sandvik, K. (2003), “The impact of market orientation on product innovativeness and business performance”, International journal of Research in Marketing, Vol. 20, No. 4, pp. 355-376.10.1016/j.ijresmar.2003.02.002Open DOISearch in Google Scholar

52. Souitaris, V. (2002), “Technological trajectories as moderators of firm-level determinants of innovation”, Research Policy, Vol. 31, No. 6, pp. 877-898.10.1016/S0048-7333(01)00154-8Open DOISearch in Google Scholar

53. Van Riel, A. C., Lemmink, J., Ouwersloot, H. (2004), “High-technology service innovation success: a decision-making perspective”, Journal of Product Innovation Management, Vol. 21, No. 5, pp. 348-359.10.1111/j.0737-6782.2004.00087.xSearch in Google Scholar

54. Wang, Y., Li, J., Furman, J. L. (2017), „Firm performance and state innovation funding: Evidence from China’s innofund program”, Research Policy, Vol. 46, No. 6, pp. 1142-1161.10.1016/j.respol.2017.05.001Open DOISearch in Google Scholar