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Evaluation of public R&D policies: A cross-country comparison

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  • CZARNITZKI Dirk
  • LOPES BENTO Cindy

Abstract

This study focuses on the effect of public funding on internal R&D investment and on total innovation intensity on a cross-country comparative level. Using harmonisedmicro data from five different countries, this study analyzes the heterogeneity of the useof policy instruments. Applying a nonparametric matching method to identify thetreatment effect, we find that on average firms would have invested significantly less ifthey would not have received subsidies. On similar grounds, our estimation also takesinto account the ?treatment effects on the untreated?. This estimation enables us toassess whether or not governments could further foster R&D activities by extendinginnovation policies to currently not supported firms. With the exception of one country,all the governments of the sample would benefit from an extension of their subsidypolicies. Finally, these two matching results can be combined in order to test formisallocation of public funds. Our analysis does not uncover any systematicmisallocation of public funding for the countries under review.

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Bibliographic Info

Paper provided by CEPS/INSTEAD in its series CEPS/INSTEAD Working Paper Series with number 2010-31.

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Length: 36 pages
Date of creation: Oct 2010
Date of revision:
Handle: RePEc:irs:cepswp:2010-31

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Keywords: Innovation; Policy evaluation; Treatment effects; Cross-country comparison;

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  1. Xulia González & Jordi Jaumandreu & Consuelo Pazó, 2001. "Barriers to innovation and subsidy e¤ectiveness," Working Papers, Universidade de Vigo, Departamento de Economía Aplicada 0112, Universidade de Vigo, Departamento de Economía Aplicada.
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Cited by:
  1. CZARNITZKI Dirk & LOPES BENTO Cindy, 2011. "Innovation subsidies: Does the funding source matter for innovation intensity and performance? Empirical evidence from Germany," CEPS/INSTEAD Working Paper Series, CEPS/INSTEAD 2011-42, CEPS/INSTEAD.
  2. BIA Michela & FLORES Carlos A. & MATTEI Alessandra, 2011. "Nonparametric Estimators of Dose-Response Functions," CEPS/INSTEAD Working Paper Series, CEPS/INSTEAD 2011-40, CEPS/INSTEAD.

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