Small Business Economics

, Volume 24, Issue 1, pp 53–62 | Cite as

R&D Subsidy and Self-Financed R&D: The Case of Japanese High-Technology Start-Ups

  • Tadahisa Koga


This paper examines whether public R&D subsidies constitute a substitute or complement for private-financed R&D. The empirical analysis is based on a panel data of 223 Japanese high-technology start-ups. Our evidence is consistent with the complement hypothesis, i.e., that publicly-funded R&D does promote private R&D. The complement effects are stronger for more mature firms. This is because such firms, in the growth phase, might have greater demands for R&D funds.


Growth Phase Empirical Analysis Panel Data Industrial Organization Great Demand 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.


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Copyright information

© Springer Science + Business Media, Inc. 2005

Authors and Affiliations

  • Tadahisa Koga
    • 1
  1. 1.National Institute of Science and Technology Policy(NISTEP)Chiyoda-kuTokyoJapan

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