Public spending on R&D incentives amounts to several billion euros per year, but there is still limited evidence on which combinations of policies maximize returns in terms of innovation and firm performance. We study the optimal mix and timing of R&D support policies, leveraging the comprehensive system implemented in France, which includes tax credits, targeted incentives based on firm size and age, as well as direct subsidies. We analyze which policy combinations enhance firm performance and innovation, for which types of firms, and at what point in time. To causally identify the optimal timing of intervention, we exploit eligibility thresholds using regression discontinuity designs, comparing firms around the 8-year eligibility cutoff for Young Innovative Company (JEI) and University-Based Young Innovative Company (JEU) programs.
Policies for high-quality innovation
Data provided through CASD (21)
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