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Public support prevalence and innovation behavior. Uruguay 2007-2015

Author

Listed:
  • Liliana Gelabert

    (IE Univeristy)

  • Martín Pereyra

    (Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales. Departamento de Economía / CINVE)

  • Flavia Roldán

    (Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales. Departmento de Economía)

Abstract

Using Uruguayan data from 2007 to 2015, we examine the role of the distribution of public support within sectors on the firm innovation efforts. Our empirical analysis shows that the manner in which public support is allocated within a sector affects a firm's incentives to undertake innovation expenditures. When public support for innovation activities is more equitably distributed within a sector, firms that persistently undertake innovation activities increase their innovation expenditures, whether or not they are direct recipients of support. These results highlight a new indirect mechanism by which innovation policy affects a firm's incentives to undertake private innovation.

Suggested Citation

  • Liliana Gelabert & Martín Pereyra & Flavia Roldán, 2021. "Public support prevalence and innovation behavior. Uruguay 2007-2015," Documentos de Investigación 127, Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales.
    • Handle: RePEc:avs:wpaper:127
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    File URL: https://dspace.ort.edu.uy/bitstream/handle/20.500.11968/4335/documentodeinvestigacion127.pdf
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    innovation policy; innovation expenditure; Latin America.;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L12 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Monopoly; Monopolization Strategies

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