Who Gets the Money? The Dynamics of R&D Project Subsidies in Germany

In this paper I analyze which firms receive R&D project grants and how this public support evolves over time by considering in particular firm's previous participation. The extent of the dynamics of firms' participation within the funding scheme gives information about the openness of the scheme towards non-participating firms. Using firm-level data on German manufacturing and knowledge-intensive service firms, it turns out that participation in the funding scheme shows a rather high level of continuity. This is also confirmed by applying a multivariate approach. Firms which received funding in the past are more likely to be selected for public funding again. Moreover, a firm's size and knowledge capabilities increase the probability of entering the scheme.