Research

Working papers


The effect of government research grants on firm innovation: theory and evidence from Austria (submitted)

Abstract:
This paper examines the effect of government research grants on firms’ patenting outcomes. Discontinuities in the funding decisions of the Austrian Research Promotion Agency (FFG) allow me to study the effect of public funding in a large sample of Austrian firms. My estimates suggest that a government research grant increases the propensity to file a patent application with the European Patent Office within 4 years by around 10 percentage points. Stronger effects appear for established firms of advanced age. I present evidence that established firms undertake more ambitious research projects when they receive grants. Finally, I interpret the findings in an “exploration vs. exploitation” model in which the government agency addresses inefficiency in the direction of research.

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Immigrant inventors and local income taxes: evidence from Swiss municipalities

Abstract:
This paper studies the relationship between local personal income tax rates and the attractiveness of municipalities as residential locations for immigrant inventors in Switzerland. Exploiting sharp differences in top income tax rates across state borders, I find an elasticity of the probability that an inventor locates in a municipality with respect to the top net-of-tax rate of around 3.54. I present additional evidence that suggests that local income tax rates affect the localization of entrepreneurial activity of immigrant inventors.

Current Version (PDF)