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Impact of P&D Incentive Program on the Performance and Technological Efforts of Brazilian Industrial Firms

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Author Info
João Alberto De Negri (Institute for Applied Economics Research – IPEA.)
Mauro Borges Lemos (Federal University of Minas Gerais – UFMG.)
Fernanda De Negri (Institute for Applied Economics Research - IPEA.)

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Abstract

Public policies that promote R&D in firms are evaluated on a regular basis in developed countries. However, this type of study is relatively rare in developing countries.. In Brazil no impact evaluation analysis that use information at firms’ level has been published. The present study, which assesses the impact of the National Technological Development Support Program (ADTEN)1 on the technical performance and strength of Brazilian industrial firms, is unprecedented in its content and method. It shows that this R&D incentive program reaches a relatively limited number of firms, considering the magnitude of the Brazilian industrial sector. The program reaches only 0.07% of Brazilian industrial firms with over 10 employees, and the volume of resources that firms borrowed within the program’s framework was only 1.6% and 3% of their R&D expenditures in 2000 and 2003, respectively. It was found evidences that ADTEN had a positive influence on companies’ private R&D expenditures from 1996 to 2003. One can say that at least the crowding out hypothesis can be rejected. There are also strong evidences that the program has positively influenced the growth of firms, their productivity and patent applications, although results are not conclusive for these two last indicators.

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Paper provided by Inter-American Development Bank, Office of Evaluation and Oversight (OVE) in its series OVE Working Papers with number 1406.

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Length: 33 pages
Date of creation: Dec 2006
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Handle: RePEc:idb:ovewps:1406

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Find related papers by JEL classification:
H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
O32 - Economic Development, Technological Change, and Growth - - Technological Change - - - Management of Technological Innovation and R&D
O38 - Economic Development, Technological Change, and Growth - - Technological Change - - - Government Policy

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  1. Ron Jarmin, 1998. "Manufacturing Extension And Productivity Dynamics," Working Papers 98-8, Center for Economic Studies, U.S. Census Bureau. [Downloadable!]
  2. Richard Blundell & Monica Costa Dias, 2000. "Evaluation methods for non-experimental data," Fiscal Studies, Institute for Fiscal Studies, vol. 21(4), pages 427-468, January. [Downloadable!]
  3. Meyer, Bruce D, 1995. "Natural and Quasi-experiments in Economics," Journal of Business & Economic Statistics, American Statistical Association, vol. 13(2), pages 151-61, April.
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  4. Alberto Abadie & David Drukker & Jane Leber Herr & Guido W. Imbens, 2004. "Implementing matching estimators for average treatment effects in Stata," Stata Journal, StataCorp LP, vol. 4(3), pages 290-311, September. [Downloadable!]
  5. Hussinger, Katrin, 2003. "R&D and Subsidies at the Firm Level : An Application of Parametric and Semi-Parametric Two-Step Selection Models," ZEW Discussion Papers 03-63, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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  1. Bronwyn H. Hall & Alessandro Maffioli, 2008. "Evaluating the Impact of Technology Development Funds in Emerging Economies: Evidence from Latin America," NBER Working Papers 13835, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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