No. 1526 - Bridging the gap in innovation: the case of regional R&D subsidies in Southern Italy
Temi di discussione (Working papers)
by Antonio Veronico
April 2026
The paper analyses the effects of a regional incentive measure adopted in 2008 by the Puglia regional government to support the innovative activities of small and medium-sized enterprises operating in the area. The subsidy provided a financial allocation of nearly €50 million for the 2007-13 period. The analysis evaluates the measure using information drawn from firms' financial statements and from the payments made by the regional government.
Firms that received the subsidy, on average, tripled their intangible assets and increased their workforce by roughly one third (resulting in 12 additional employees). By contrast, there were no significant effects on tangible assets or on productivity.
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