Thanks to Rob Bryant and Phil Ruthven for permission to use IBISWorld Business Information, Evan Lloyd for research assistance and Deborah Cobb-Clark and Jonathan Chew for comments. Funding for this research was provided by the Commonwealth Department of Climate Change but do not represent the opinions and views of the Department.
The Design of R&D Support Schemes for Industry†
Version of Record online: 7 JAN 2013
Copyright © 2012 The Economic Society of Australia
Economic Papers: A journal of applied economics and policy
Volume 31, Issue 4, pages 464–477, December 2012
How to Cite
Thomson, R. and Webster, E. (2012), The Design of R&D Support Schemes for Industry. Economic Papers: A journal of applied economics and policy, 31: 464–477. doi: 10.1111/1759-3441.12001
- Issue online: 7 JAN 2013
- Version of Record online: 7 JAN 2013
- R&D subsidies;
- innovation policy design;
- R&D policy
Scant discussion exists in the literature about the relative design merits of various R&D schemes, and most authors treat programme design as a black box. In this article, we assess the design features of three major forms of R&D support: entitlement schemes, competitive grant schemes and industry R&D boards. We use a combination of evidence to comment on how well these schemes perform in terms of firm engagement (how does the scheme recruit business interest?), project selection (what criteria are used and who selects the projects?), payment structure (how is financial support structured?) and administrative costs (what is the burden?).