R&D policies in France: New evidence from a NUTS3 spatial analysis

Abstract : The French Policy-mix for R&D and innovation has deeply evolved in recent years and is nowadays, one of the most generous and market-friendly system in the world. This paper investigates the (evolutive) effects of this policy-mix by using a unique database containing information on the amount of R&D tax credit, regional, national and European subsidies received by firms in all French metropolitan NUTS3 regions over the period 2001-2011. By estimating a Spatial Durbin model with regimes and fixed effects, we provide new evidence on the efficiency of the French Policy-mix. First, a yardstick competition between NUTS3 regions for R&D investment driven by negative spatial spillovers is found. Second, it seems that national subsidies are the only instrument able to generate a significant leverage effect on privatelyfinanced R&D. Third, the three other policies studied (Tax Credit, Regional and European subsidies) do not generate significant leverage or crowding-out effect due to spatial effects. Fourth, we highlight the presence of structural breaks in our data that correspond to the last two important reforms of the French tax credit. Consequently, the effect of R&D policies and especially R&D tax credit are likely to change over time and influence ex-post evaluation results.
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https://halshs.archives-ouvertes.fr/halshs-01239437
Contributor : Benjamin Montmartin <>
Submitted on : Monday, December 7, 2015 - 5:42:06 PM
Last modification on : Friday, August 23, 2019 - 3:51:55 PM

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Benjamin Montmartin, Nadine Massard, Marcos Herrera. R&D policies in France: New evidence from a NUTS3 spatial analysis. 2015. ⟨halshs-01239437⟩

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