Estimating the effects of State aid provided by ADEME

“Estimating the effects of State aid provided by ADEME on the R&D and corporate performance”

Motivation: The Agency for the Enviroevaluation-ademe-ippnment and Energy Management (ADEME) is one of the operators of the national program “Investing for the Future” (“Investissements d’Avenir”) whose aim is to stimulate research and development activities and spur innovations. In this context, ADEME helps financing projects which meet the criteria of various calls for projects launched for two subprograms: “Vehicle of the Future” and “Demonstrators of ecological and energy transition”, by providing grants and repayable advances. As a large aid scheme with possibly major effects on competitiveness of firms of the common European market, the European Commission requires that its effects should be evaluated.

The project: The aim of this project is to conduct a preliminary econometric evaluation of the effects of the aid scheme on the firms’ R&D activity and overall business performance, as synthetized by various indicators such as R&D expenses, the number of patents or the workforce. These effects will be assessed using the aid scheme data, matched with external data on firms. This project will enable to draft recommendations for a final evaluation.ademe

Funding: Agence de l’Environnement et de la Maîtrise de l’Energie

IPP researchers associated with this project: Sophie Cottet, Fanny Henriet, Katrin Millock, Marion Monnet and Lucile Romanello.