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Public support to firm-level innovation: An evaluation of the FONTAR program

Author

Listed:
  • Mariano Pereira
  • Julián Martínez Correa
  • Gabriel Scattolo

Abstract

This paper studies the impact of non-refundable grants (NRG) of the Argentinean Technological Fund (FONTAR) on firms’ innovative efforts and performance. We use a panel database of 954 firms that applied for public support to innovate during the period 2007-2013. Using a difference-in-differences approach, our results show that the NRG have a positive effect on firms’ innovative intensity, considering both the innovation activities to sales ratio and R&D to sales ratio. These remain robust to alternative definitions of control group and the outcome variable. Analysis of heterogeneous effects reveals that the impact was exclusively concentrated on small and young firms.

Suggested Citation

  • Mariano Pereira & Julián Martínez Correa & Gabriel Scattolo, 2018. "Public support to firm-level innovation: An evaluation of the FONTAR program," Estudios de Economia, University of Chile, Department of Economics, vol. 45(2), pages 251-269, December.
    • Handle: RePEc:udc:esteco:v:45:y:2018:i:2:p:251-269
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    File URL: https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/51350/53735
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    Citations

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    Cited by:

    1. Cátia Rosário & Celeste Varum & Anabela Botelho, 2022. "Impact of Public Support for Innovation on Company Performance: Review and Meta-Analysis," Sustainability, MDPI, vol. 14(8), pages 1-16, April.
    2. Jugend, Daniel & Fiorini, Paula De Camargo & Armellini, Fabiano & Ferrari, Aline Gabriela, 2020. "Public support for innovation: A systematic review of the literature and implications for open innovation," Technological Forecasting and Social Change, Elsevier, vol. 156(C).

    More about this item

    Keywords

    Innovation; impact evaluation; Argentina;
    All these keywords.

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models

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