Evaluating the impact of public subsidies on a firm’s performance: a two-stage quasi-experimental approach
AbstractIn this paper we evaluate the effectiveness of regional R&D public programs in Catalonia (Spain) with a two-stage procedure. Firstly, we compare the performance of publicly subsidised companies (treated) with that of similar, but unsubsidised companies (non-treated). We use the Propensity Score Matching (PSM) methodology to construct a control group which, with regard to its observable characteristics, is as similar as possible to the treated group, and that allows us to identify firms which maintain the same propensity to receive public subsidies. Secondly, and once a valid comparison group has been established, we compare the respective performance of each firm using regression techniques. As a result, we find that recipient firms, on average, seem to increase their value added as a direct result of public subsidy programs.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Asociación Española de Ciencia Regional in its journal Investigaciones Regionales.
Volume (Year): (2009)
Issue (Month): 16 ()
Contact details of provider:
Postal: C/ Viladomat, 321 entresuelo - 08029 Barcelona, Teléfono y Fax: + 34 933101112, E-mail: firstname.lastname@example.org, Web: www.aecr.org, Web Investigaciones Regionales: www.investigacionesregionales.org
Phone: +34 93 310 11 12
Fax: +34 93 310 11 12
Web page: http://www.aecr.org/
More information through EDIRC
R&D policy; evaluation; firm performance; Propensity Score Matching;
Find related papers by JEL classification:
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
- H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
- L25 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Firm Performance
- L53 - Industrial Organization - - Regulation and Industrial Policy - - - Enterprise Policy
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Fritsch, Michael & Stephan, Andreas, 2005. "Regionalization of innovation policy--Introduction to the special issue," Research Policy, Elsevier, vol. 34(8), pages 1123-1127, October.
- LaLonde, Robert J, 1986. "Evaluating the Econometric Evaluations of Training Programs with Experimental Data," American Economic Review, American Economic Association, vol. 76(4), pages 604-20, September.
- Lerner, Josh, 1999. "The Government as Venture Capitalist: The Long-Run Impact of the SBIR Program," The Journal of Business, University of Chicago Press, vol. 72(3), pages 285-318, July.
- Rajeev H. Dehejia & Sadek Wahba, 1998.
"Propensity Score Matching Methods for Non-experimental Causal Studies,"
NBER Working Papers
6829, National Bureau of Economic Research, Inc.
- Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity Score-Matching Methods For Nonexperimental Causal Studies," The Review of Economics and Statistics, MIT Press, vol. 84(1), pages 151-161, February.
- Dehejia, R.H. & Wahba, S., 1998. "Propensity Score Matching Methods for Non-Experimental Causal Studies," Discussion Papers 1998_02, Columbia University, Department of Economics.
- Rajeev H. Dehejia & Sadek Wahba, 2002. "Propensity score matching methods for non-experimental causal studies," Discussion Papers 0102-14, Columbia University, Department of Economics.
- A. Smith, Jeffrey & E. Todd, Petra, 2005.
"Does matching overcome LaLonde's critique of nonexperimental estimators?,"
Journal of Econometrics,
Elsevier, vol. 125(1-2), pages 305-353.
- Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, CIBC Centre for Human Capital and Productivity Working Papers 20035, University of Western Ontario, CIBC Centre for Human Capital and Productivity.
- Klette, T.J. & Moen, J. & Griliches, Z., 1999. "Do Subsidies to Commercial R&D Reduce Market Failures? Microeconometric Evaluation Studies," Papers 16/99, Norwegian School of Economics and Business Administration-.
- J. Vicente Blanes & Isabel Busom, 2004.
"WHO PARTICIPATES IN R&D SUBSIDY PROGRAMS?. The case of Spanish Manufacturing Firms,"
wpdea0407, Department of Applied Economics at Universitat Autonoma of Barcelona.
- Blanes, J. Vicente & Busom, Isabel, 2004. "Who participates in R&D subsidy programs?: The case of Spanish manufacturing firms," Research Policy, Elsevier, vol. 33(10), pages 1459-1476, December.
- Raffaele Paci & Stefano Usai, 2000.
"Technological Enclaves and Industrial Districts: An Analysis of the Regional Distribution of Innovative Activity in Europe,"
Taylor and Francis Journals, vol. 34(2), pages 97-114.
- Raffaele Paci & Stefano Usai, 1998. "Technological enclaves and industrial districts: An analysis of the regional distribution of innovative activity in Europe," ERSA conference papers ersa98p461, European Regional Science Association.
- R. Paci & S. Usai, 1997. "Technological enclaves and industrial districts. An analysis of the regional distributions of innovative activity in Europe," Working Paper CRENoS 199708, Centre for North South Economic Research, University of Cagliari and Sassari, Sardinia.
- Ivan Turok, 1997. "Evaluating European support for business development: evidence from the structural funds in Scotland," Entrepreneurship & Regional Development, Taylor and Francis Journals, vol. 9(4), pages 335-352, January.
- H Lenihan, 1999. "An evaluation of a regional development agency's grants in terms of deadweight and displacement," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 17(3), pages 303-318, June.
- Isabel Busom, 2000. "An Empirical Evaluation of The Effects of R&D Subsidies," Economics of Innovation and New Technology, Taylor and Francis Journals, vol. 9(2), pages 111-148.
- Roper, Stephen & Hewitt-Dundas, Nola & Love, James H., 2004. "An ex ante evaluation framework for the regional benefits of publicly supported R&D projects," Research Policy, Elsevier, vol. 33(3), pages 487-509, April.
- Pilar Socorro, M., 2007. "Optimal technology policy under asymmetric information in a research joint venture," Journal of Economic Behavior & Organization, Elsevier, vol. 62(1), pages 76-97, January.
- Helena Lenihan, 2004. "Evaluating Irish industrial policy in terms of deadweight and displacement: a quantitative methodological approach," Applied Economics, Taylor and Francis Journals, vol. 36(3), pages 229-252.
- Sascha O. Becker & Andrea Ichino, 2002. "Estimation of average treatment effects based on propensity scores," Stata Journal, StataCorp LP, vol. 2(4), pages 358-377, November.
- Helena Lenihan & Mark Hart, 2004. "The use of counterfactual scenarios as a means to assess policy deadweight: an Irish case study," Environment and Planning C: Government and Policy, Pion Ltd, London, vol. 22(6), pages 817-839, December.
- Arvanitis, Spyros & Hollenstein, Heinz & Lenz, Stephan, 2002. " The Effectiveness of Government Promotion of Advanced Manufacturing Technologies (AMT): An Economic Analysis Based on Swiss Micro Data," Small Business Economics, Springer, vol. 19(4), pages 321-40, December.
- Michalek, Jerzy & Ciaian, Pavel & Kancs, d'Artis, 2013.
"Firm-Level Evidence Of Deadweight Loss Of Investment Support Policies: A Case Study Of Dairy Farms In Schleswig-Holstein,"
Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain
152257, International Agricultural Trade Research Consortium.
- Michalek, Jerzy & Ciaian, Pavel & Kancs, d'Artis, 2013. "Firm-Level Evidence of Deadweight Loss of Investment Support Policies: A Case Study of Dairy Farms in Schleswig-Holstein," Proceedings Issues, 2013: Productivity and Its Impacts on Global Trade, June 2-4, 2013. Seville, Spain 152258, International Agricultural Trade Research Consortium.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Julieta Llungo Ortíz).
If references are entirely missing, you can add them using this form.