Public selection and financing of R&D cooperative projects : credit versus subsidy funding
AbstractIn this article we develop an analytical model of the selection process for R&D cooperative projects, to study the factors that motivate public project selection and corresponding funding, using two different financial instruments: subsidies and credits. For this purpose, we propose a three stage empirical strategy to analyse the differential individual effects of several factors on the decisions taken by the public agency. This analysis is based on project level data from cooperative R&D project calls under the Spanish PROFIT initiative, for the period 20002003. The main results show that the public agency uses the two financial instruments to address different objectives. First, some projects close to the market are well supported through credits, while basic research projects receive only selective support in the form of subsidies. Second, there is significant diversity in the selection and funding of technological areas. Third, regarding the explicit goal of fostering cooperation, the public agency selectively favours partnerships with universities and technology institutes through the award of subsidies. However, there seems to be less incentive for large consortia. Fourth, there are significant regional differences among financed projects and, also, our data show sharp yearly fluctuations
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Bibliographic InfoPaper provided by Universidad Carlos III de Madrid in its series Open Access publications from Universidad Carlos III de Madrid with number info:hdl:10016/12684.
Length: 565 p.
Date of creation: May 2010
Date of revision:
Publication status: Published in Research Policy (2010-05) v.v. 39, p.549-563
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Web page: http://www.uc3m.es
Public Funding; R&D Cooperation; Project selection; Credit; Subsidy;
Other versions of this item:
- Santamaría, Lluís & Barge-Gil, Andrés & Modrego, Aurelia, 2010. "Public selection and financing of R&D cooperative projects: Credit versus subsidy funding," Research Policy, Elsevier, vol. 39(4), pages 549-563, May.
- H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
- H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
- H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
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