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In this paper we assess the impact of public support for R&D activities on the educational mix of R&D employees in private companies in Belgium, covering the period 2001-2009. Data on federal tax incentives in support of R&D activities are matched with R&D survey data to investigate changes in the share of R&D employees with a specific degree: PhDs; higher education (second stage and first stage respectively); and other qualifications. Estimations show that public support significantly
raises the share of researchers holding a PhD. There are indications that PhDs substitute for R&D employees with a lower degree. We also show that controlling for the changes in the educational mix of R&D personnel lowers the estimates of the impact of public support on the average wages of researchers.
Structural studies > Productivity and long-term growth
Public Economics > Fiscal Policies and Behavior of Economic Agents > Firm [H32]
Economic Development, Technological Change, and Growth > Technological Change > Management of Technological Innovation and R&D [O32]
Economic Development, Technological Change, and Growth > Technological Change > Government Policy [O38]