Behavioural Additionality Effects of R&D Subsidies

There is a broad empirical literature on directly measurable economic effects of public R&D-promotion schemes. While some papers focus on gross effects such as increased turnover, enhanced productivity, stronger competitiveness, improved market positions and the like (output additionality), others address the question in how far public R&D assistance induces companies to spend more own additional resources on R&D than they would have spent anyway (input additionality). "Behavioural Additionality" in turn broadens the traditional additionality concepts by looking at permanent changes in the conduct of a company, possibly mirrored in a more formal institutionalisation of innovation and R&D activities. Based on firm-level data this paper is the first to empirically analyse such (behavioural) additionality aspects of companies that have received subsidies from the Austrian federal R&D support scheme (FFF). The empirical results widely support the notion that assisted companies have been successful to enhance their innovation capabilities and competence building in general and to make use of new technologies and R&D procedures elsewhere.