Page 35 - IDEA Study 8 2017 Direct subsidies and R&D output in firms

Sectoral differences Sectoral differences are examined by dividing the firms into two groups along the traditional division between industry and services (alphabetical NACE codes, rev. 2 classification in brackets): ● Industry (B – Mining and quarrying; C – Manufacturing; D – Electricity, gas, steam and air-conditioning supply; E – Water supply, sewerage, waste management and remediation activities) ● Services (J –Information and communication; M – Professional, scientific and technical activities). Figure 3 shows the main results (see Appendix Table A9 for details). Again, the effects of the programmes turn out to be fairly heterogeneous. The general pattern that the effects are much weaker for IMPULS than for TIP and ALFA is confirmed. For IMPULS the effects are not statistically significant at the conventional levels regardless of the sector, with the exception of the simplest NN1 procedure, which are not backed up by the other matching procedures. However, the steep drop in the estimated effect of IMPULS for services in the third (t+2) year can perhaps more than anything be attributed to data limitations and to the fact that the programme was explicitly focused on manufacturing. Overall, there does not seem to be a clear pattern of broad sectoral differences. 33