They concluded that there were additive effects of public R&D financing on private research expenditure, but only for small firms. Benavente (2003) compared and analyzed the Chilean manufacturing firms under a situation that whether firms received or did not receive R&D subsidies from 1995 to 1998. The author found a positive relationship between public funding and private R&D. There was a dollars crowding-in effect in R&D spending in firms that received public funding. The firms that received public R&D funding had higher R&D spending than those corresponding firms without public R&D support. Besides, Einiö (2009) identified of the.
