Do public R&D subsidies boost competitiveness of supported companies in the Czech Republic?
|Author:||Mgr. Petr Horák|
|Year:||2016 - winter|
|Leaders:|| prof. PhDr. Petr Teplý Ph.D.
|Work type:|| Economic Theory
|Awards and prizes:|
|Abstract:||The purpose of this thesis is to investigate the impact of government non-investment and
applied R&D subsidies on the firm level competitiveness. According to many literature
sources the indicators of competitiveness are assumed to be Return on Assets, Return on
Equity, Return on Sales and Asset Turnover ratio. The tool used to test the effect is
counterfactual analysis. The subsidized companies are compared to a control group drawn by
Propensity Score Matching, the effect is tested by Average Treatment Effect on the Treated
and the difference in size of other financials is derived by Difference in Differences. The
study focuses on two industries NACE C25 (metallurgy) and C28 (manufacture of machines).
The subsidized companies show no added significant growth of competitiveness whatsoever.
The financials (Total Assets, Equity, Turnover) grew, compared to the control group, only for