Abstract
One of the main purposes of government R&D subsidies is to give domestic enterprises a competitive edge in international trade of high technology products. The empirical evidence, however, is disappointing: cross-section regression approach for six industries and five countries yielded a negative impact of R&D subsidies on exports of research intensive goods. An analysis of the distribution of public funds suggests that this poor performance could at least partially be explained by the high concordance of national technology policies and the concentration of public funds on big science projects.
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