1. State Aid, R&D, and the Digital Content of Trade
- Author:
- Chiara Castelli, Dario Guarascio, Stefan Jestl, and Robert Stehrer
- Publication Date:
- 11-2023
- Content Type:
- Working Paper
- Institution:
- The Vienna Institute for International Economic Studies (WIIW)
- Abstract:
- We test for the role of state aid as a driver of digital competitiveness at the industry level, focusing on the digital factor content of trade. Results show that state aid may increase digital competitiveness, particularly in R&D-intensive industries and in relation to the export of (digital) capital-intensive goods and services. Interestingly, aggregate state aid appears to be more effective than specific R&D funds in explaining the performance of country-industries in foreign markets.
- Topic:
- International Trade and Finance, European Union, Trade, Industry, Capital, and Research and Development
- Political Geography:
- Europe