Public support for R&D and the educational mix for r&D employees

no isbnIn this paper we assess the impact of public support for R&D activities on the educational mix of R&D employees in private companies. Data on tax incentives in support of R&D activities of companies in Belgium are matched with R&D survey data to investigate changes in the share of R&D employees with a specific degree: PhD’s; higher education (second stage and first stage respectively); and other qualifications. The results of an econometric analysis are triangulated with in-depth information on the appraisal by companies of tax incentives for R&D. Estimations show that public support significantly raises the share of researchers holding a PhD. There are indications that PhD’s 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 wages of researchers.status: publishe