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Impact Evaluation of a Program of Public Funding of Private Innovation Activities. An Econometric Study of FONTAR in Argentina

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Author Info

  • Andres Lopez

    ()
    (Centro de Investigaciones para la Transformación (CENIT), Buenos Aires, Argentina)

  • Ana Maria Reynoso
  • Martin Rossi

    ()
    (Universidad de San Andrés, Buenos Aires, Argentina)

Abstract

The main finding of this impact evaluation is that beneficiary firms of FONTAR as a whole and of ANR in particular, spend more on innovation activities such as research and development and purchase of technology. Increments in innovation expenditures are found even when the amount received by the program is netted out from the total amount spent, indicating that beneficiary firms are caused to privately finance part of the increment on innovation expenditures. This would support the additionality hypothesis against the crowding out hypothesis. What is more, empirical evidence suggests that funds spent on innovation activities are efficient in the sense that subsidized firm actually accomplish more innovations. Long run effects on productive performance could not be detected.

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Bibliographic Info

Paper provided by Inter-American Development Bank, Office of Evaluation and Oversight (OVE) in its series OVE Working Papers with number 0310.

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Length: 23 pages
Date of creation: Nov 2010
Date of revision:
Handle: RePEc:idb:ovewps:0310

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Keywords: Innovation and R&D; Policy Evalution;

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Cited by:
  1. Correa, Paulo & Andres, Luis & Borja-Vega, Christian, 2013. "The impact of government support on firm R&D investments : a meta-analysis," Policy Research Working Paper Series 6532, The World Bank.

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