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Public Support to Innovation Strategies

Author

Listed:
  • Laura Barbieri

    (Dipartimento di Scienze Economiche e Sociali, Università Cattolica)

  • Daniela Bragoli

    (Dipartimento di Discipline matematiche, Finanza matematica ed Econometria, Università Cattolica)

  • Flavia Cortelezzi

    (Dipartimento di Diritto, Economia e Culture, Università degli Studi dell’Insubria)

  • Giovanni Marseguerra

    (Dipartimento di Discipline matematiche, Finanza matematica ed Econometria, Università Cattolica)

Abstract

This study investigates whether the receipt of public R&D funding determines firm's R&D strategy election. Using the Community Innovation Survey (CIS) dataset including more than 3000 Italian manufacturing companies, we adopt a multinomial logit model after controlling for sample selection and endogeneity issues which arise when dealing with CIS data. The main finding is that public R&D funding in uences whether firms select the make, the buy or the make&buy strategy and in particular firms, after receiving public support, prefer the composite strategy rather than the single strategies. This result turns out to be good news given that government support, correcting for the market failures which characterize the combined strategy, favors the strategy which seems to enhance a positive synergy between in house R&D and external sourcing.

Suggested Citation

  • Laura Barbieri & Daniela Bragoli & Flavia Cortelezzi & Giovanni Marseguerra, 2015. "Public Support to Innovation Strategies," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises1509, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
    • Handle: RePEc:ctc:serie2:dises1509
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    References listed on IDEAS

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    More about this item

    Keywords

    Public Funding; R&D strategies; CIS Survey;
    All these keywords.

    JEL classification:

    • G32 - Financial Economics - - Corporate Finance and Governance - - - Financing Policy; Financial Risk and Risk Management; Capital and Ownership Structure; Value of Firms; Goodwill
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • D21 - Microeconomics - - Production and Organizations - - - Firm Behavior: Theory

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