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Evaluating the Impact of Technology Development Funds in Emerging Economies: Evidence from Latin-America

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  • Bronwyn H. Hall
  • Alessandro Maffioli

Abstract

This working paper surveys impact evaluations of government Technology Development Funds (TDFs) in Argentina, Brazil, Chile and Panama. All the evaluations were done at the recipient (firm) level using data from innovation surveys, industrial surveys, and administrative records of the granting units, together with quasi-experimental econometric techniques to minimize the effects of any selection bias. The surveyed evaluations considered four levels of potential impact: R&D input additionality, behavioural additionality, increases in innovative output, and improvements in performance. The evidence suggests that TDFs do not crowd out private investment and that they positively affect R&D intensity. In addition, participation in TDFs induces a more proactive attitude of beneficiary firms towards innovation activities.

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Bibliographic Info

Paper provided by Inter-American Development Bank in its series IDB Publications with number 24638.

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Date of creation: Jan 2008
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Handle: RePEc:idb:brikps:24638

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Keywords: Science & Technology; WP-01/08;

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  1. Hall, Bronwyn H., 2002. "The Financing of Research and Development," Department of Economics, Working Paper Series, Department of Economics, Institute for Business and Economic Research, UC Berkeley qt34c1c643, Department of Economics, Institute for Business and Economic Research, UC Berkeley.
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  3. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, Elsevier, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097 Elsevier.
  4. Richard Blundell & Monica Costa Dias, 2008. "Alternative approaches to evaluation in empirical microeconomics," CeMMAP working papers, Centre for Microdata Methods and Practice, Institute for Fiscal Studies CWP26/08, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
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  7. José Miguel Benavente & José De Gregorio & Marco Núñez, 2006. "Rates of Return for Industrial R&D in Chile," Working Papers, University of Chile, Department of Economics wp220, University of Chile, Department of Economics.
  8. Chiara Binelli & Alessandro Maffioli, 2007. "A Micro-econometric Analysis of Public Support to Private R&D in Argentina," International Review of Applied Economics, Taylor & Francis Journals, Taylor & Francis Journals, vol. 21(3), pages 339-359.
  9. João Alberto De Negri & Mauro Borges Lemos & Fernanda De Negri, 2006. "Impact of P&D Incentive Program on the Performance and Technological Efforts of Brazilian Industrial Firms," OVE Working Papers, Inter-American Development Bank, Office of Evaluation and Oversight (OVE) 1406, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
  10. Alessandro Maffioli, 2005. "The Formation of Network and Public Intervention: Theory and Evidence from the Chilean Experience," ISLA Working Papers, ISLA, Centre for research on Latin American Studies and Transition Economies, Universita' Bocconi, Milano, Italy 23, ISLA, Centre for research on Latin American Studies and Transition Economies, Universita' Bocconi, Milano, Italy, revised May 2005.
  11. Paul A. David & Bronwyn H. Hall & Andrew A. Toole, 2000. "Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence," Development and Comp Systems 9912002, EconWPA.
  12. repec:fth:inseep:9833 is not listed on IDEAS
  13. Ariel Pakes & Zvi Griliches, 1984. "Patents and R&D at the Firm Level: A First Look," NBER Chapters, in: R & D, Patents, and Productivity, pages 55-72 National Bureau of Economic Research, Inc.
  14. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, Elsevier, vol. 125(1-2), pages 305-353.
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  16. David De Ferranti & Guillermo E. Perry & Indermit Gill & J. Luis Guasch & William F. Maloney & Carolina Sanchez-Paramo & Norbert Schady, 2003. "Closing the Gap in Education and Technology," World Bank Publications, The World Bank, number 15168, August.
  17. João Alberto De Negri & Mauro Borges Lemos & Fernanda De Negri, 2006. "The Impact of University Enterprise Incentive Program on the Performance and Technological Efforts of Brazilian Industrial Firms," OVE Working Papers, Inter-American Development Bank, Office of Evaluation and Oversight (OVE) 1306, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
  18. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
  19. Velho, Lea, 2004. "Science and Technology in Latin America and the Caribbean: An Overview," UNU-INTECH Discussion Paper Series, United Nations University - INTECH 04, United Nations University - INTECH.
  20. Teubal, Morris, 1996. "R&D and technology policy in NICs as learning processes," World Development, Elsevier, Elsevier, vol. 24(3), pages 449-460, March.
  21. Klette, Tor Jakob & Moen, Jarle & Griliches, Zvi, 2000. "Do subsidies to commercial R&D reduce market failures? Microeconometric evaluation studies1," Research Policy, Elsevier, Elsevier, vol. 29(4-5), pages 471-495, April.
  22. Morris Teubal, 2002. "special issue: What is the systems perspective to Innovation and Technology Policy(ITP) and how can we apply it to developing and newly industrialized economies?," Journal of Evolutionary Economics, Springer, Springer, vol. 12(1), pages 233-257.
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