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Cited by 587

The DOI matches its Crossref record; 11 of the 11 references it cites were found in a registry or an index.

Do R&D Subsidies Stimulate or Displace Private R&D? Evidence from Israel

Lach, Saul·2002·The Journal of Industrial Economics

Abstract

In evaluating the effect of an R&D subsidy we need to know what the subsidized firm would have spent on R&D had it not received the subsidy. Using data on Israeli manufacturing firms in the 1990s we find evidence suggesting that the R&D subsidies granted by the Ministry of Industry and Trade greatly stimulated company financed R&D expenditures for small firms but had a negative effect on the R&D of large firms, although not statistically significant. One subsidized New Israeli Shekel (NIS) induces 11 additional NIS of own R&D for the small firms. However, because most subsidies go to the large firms a subsidy of one NIS generates, on average, a statistically insignificant 0.23 additional NIS of company financed R&D.

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Metadata

Authors
Lach, S.
Venue
The Journal of Industrial Economics
Publisher
Wiley
Published
2002-12
Volume
50
Issue
4
Pages
369-390
ISSN
  • 0022-1821 (ISSN-L)
  • 1467-6451
OpenAlex
W3123462346
Cited by
587
References
11
FWCI
16.75
Type
journal article
Language
en
Open access
closed

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CoChat. (2026). Citation check: Do R&D Subsidies Stimulate or Displace Private R&D? Evidence from Israel. https://app.cochat.ai/papers/10.1111/1467-6451.00182
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Lach, S. (2002). Do R&D Subsidies Stimulate or Displace Private R&D? Evidence from Israel. The Journal of Industrial Economics. https://doi.org/10.1111/1467-6451.00182

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