Paper/Speech Details of Conference Program for the 26th NISPAcee Annual Conference Program Overview V. Public Finance and Management Author(s) Dejan Ravšelj University of Ljubljana Ljubljana Slovenia Aristovnik Aleksander, Title Public Support for R&D Investment and its Effects on Firms’ R&D Expenditures: Evidence from Slovenia File Paper files are available only for conference participants, please login first. Presenter Abstract Investment in research and development (R&D) represents one of the main pillars of economic growth. The important role of government is therefore to encourage companies to develop new knowledge, skills and innovations in order to achieve greater competitiveness, employment creation, and economic development. In this context, governments use different forms of public support for R&D investment, whereby the most common are R&D subsidies and R&D tax incentives. The main purpose of both public support instruments is to encourage companies to increase their R&D spending and consequently to increase their R&D activity and to improve their performance. This paper is mostly focused on R&D subsidies as a way of direct funding. The aim of this paper is twofold. First, it tries to assess the relationship between public support for R&D investment and firms’ R&D expenditures and innovation activity at the European Union (EU) regional level. Second, it attempts to establish the relationship between public support for R&D investment and firms’ overall R&D activity in Slovenia. In order to achieve this, two different datasets are analysed using an OLS regression. The results of the empirical analysis show that public support for R&D investment have a positive impact on firms’ R&D expenditures and their innovation activity at EU regional level. Moreover, the results also suggest that public support for R&D investment has a positive impact on firms’ overall R&D activity in Slovenia. The results of this paper are beneficial for both companies as well as for governments in the formulation of relevant R&D policy in the future.