Matthew effects and R&D subsidies: knowledge cumulability in high-tech and low-tech industries
AbstractThe paper explores the causes and effects of persistence in the discretionary allocation of public subsidies to R&D activities performed by private firms in high-tech and low-tech industries. It applies the distinction between virtuous Matthew-effects and vicious Matthew-effects. The former qualifies the persistence in the discretionary allocation of public subsidies in terms of sheer reputation based upon previous awards. The latter is identified by the role of the accumulation of competence stemming from past grants in current R&D activities. Virtuous Matthew effects are found in high-tech industries where knowledge cumulability is higher. In traditional industries, vicious Matthew effects prevail for the lower levels of knowledge cumulability. Here reputation-Matthew-effects can lead to substitution of private funds with public ones. The empirical analysis is based on Transition Probability Matrices, probit regressions and Propensity Score Matching on around 700 Italian firms in the years 1998-2003.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics - University Roma Tre in its series Departmental Working Papers of Economics - University 'Roma Tre' with number 0140.
Date of creation: Oct 2011
Date of revision:
Contact details of provider:
Postal: Via Silvio d'Amico 77, - 00145 Rome Italy
Phone: +39 06 57114612
Fax: +39 06 57114771
Web page: http://host.uniroma3.it/dipartimenti/economia/it/
More information through EDIRC
Innovation; R&D subsidies; Matthew effects; past dependence; path dependence;
Other versions of this item:
- Cristiano Antonelli & Francesco Crespi, 2012. "Matthew Effects And R&D Subsidies: Knowledge Cumulability In High-Tech And Low-Tech Industries," Giornale degli Economisti, GDE (Giornale degli Economisti e Annali di Economia), Bocconi University, vol. 71(1), pages 5-31, October.
- Antonelli Cristiano & Crespi Francesco, 2011. "Matthew effects and R&D subsidues: knowledge cumulability in high-tech and low-tech industries," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201111, University of Turin.
- H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
- H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
- L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-12-13 (All new papers)
- NEP-CSE-2011-12-13 (Economics of Strategic Management)
- NEP-INO-2011-12-13 (Innovation)
- NEP-SBM-2011-12-13 (Small Business Management)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Francesco Crespi & Mario Pianta, 2008. "Diversity in innovation and productivity in Europe," Journal of Evolutionary Economics, Springer, vol. 18(3), pages 529-545, August.
- Paul M Romer, 1999.
"Endogenous Technological Change,"
Levine's Working Paper Archive
2135, David K. Levine.
- Peters, Bettina, 2005.
"Persistence of Innovation: Stylised Facts and Panel Data Evidence,"
ZEW Discussion Papers
05-81, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Bettina Peters, 2009. "Persistence of innovation: stylised facts and panel data evidence," The Journal of Technology Transfer, Springer, vol. 34(2), pages 226-243, April.
- Bettina Peters, 2006. "Persistence of Innovation Stylised Facts and Panel Data Evidence," DRUID Working Papers 06-30, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Bettina Peters, 2005. "Persistence of Innovation: Stylised Facts and Panel Data Evidence," Development and Comp Systems 0511021, EconWPA.
- Raquel Ortega-Argilés & Mariacristina Piva & Lesley Potters & Marco Vivarelli, 2010.
"Is Corporate R&D Investment In High-Tech Sectors More Effective?,"
Contemporary Economic Policy,
Western Economic Association International, vol. 28(3), pages 353-365, 07.
- Raquel Ortega-Argilés & Mariacristina Piva & Lesley Potters & Marco Vivarelli, 2009. "Is Corporate R&D Investment in High-Tech Sectors More Effective?," DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali dises0955, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
- Neil B. Niman, 1995. "Picking Winners And Losers In The Global Technology Race," Contemporary Economic Policy, Western Economic Association International, vol. 13(3), pages 77-87, 07.
- Arvanitis, Spyros & Hollenstein, Heinz & Lenz, Stephan, 2002. " The Effectiveness of Government Promotion of Advanced Manufacturing Technologies (AMT): An Economic Analysis Based on Swiss Micro Data," Small Business Economics, Springer, vol. 19(4), pages 321-40, December.
- Xulia González & Jordi Jaumandreu & Consuelo Pazó, 2001.
"Barriers to innovation and subsidy e¤ectiveness,"
0112, Universidade de Vigo, Departamento de Economía Aplicada.
- Roper, Stephen & Hewitt-Dundas, Nola, 2008. "Innovation persistence: Survey and case-study evidence," Research Policy, Elsevier, vol. 37(1), pages 149-162, February.
- J. Vicente Blanes & Isabel Busom, 2004.
"WHO PARTICIPATES IN R&D SUBSIDY PROGRAMS?. The case of Spanish Manufacturing Firms,"
wpdea0407, Department of Applied Economics at Universitat Autonoma of Barcelona.
- Blanes, J. Vicente & Busom, Isabel, 2004. "Who participates in R&D subsidy programs?: The case of Spanish manufacturing firms," Research Policy, Elsevier, vol. 33(10), pages 1459-1476, December.
- DUGUET Emmanuel, 2004. "Are R&D subsidies a substitute or a complement to privately funded R&D? Evidence from France using propensity score methods for non- experimental data," Public Economics 0411007, EconWPA.
- Antonelli, Cristiano & Crespi, Francesco & Scellato, Giuseppe, 2013.
"Path Dependent Patterns of Persistence in Productivity Growth,"
Department of Economics and Statistics Cognetti de Martiis. Working Papers
201323, University of Turin.
- Antonelli Cristiano & Crespi, Francesco & Scellato, Giuseppe, 2013. "Path Dependent Patterns of Persistence in Productivity Growth," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201310, University of Turin.
- Antonelli,Cristiano & Crespi, Francesco & Scellato, Giuseppe, 2012.
"Inside innovation persistence: New evidence from Italian micro-data,"
Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio
201213, University of Turin.
- Antonelli, Cristiano & Crespi, Francesco & Scellato, Giuseppe, 2012. "Inside innovation persistence: New evidence from Italian micro-data," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 341-353.
- Conte, Andrea & Schweizer, Philip & Dierx, Adriaan & Ilzkovitz, Fabienne, 2009. "An analysis of the efficiency of public spending and national policies in the area of R&D," MPRA Paper 23549, University Library of Munich, Germany.
- Heckman, James J & Ichimura, Hidehiko & Todd, Petra, 1998. "Matching as an Econometric Evaluation Estimator," Review of Economic Studies, Wiley Blackwell, vol. 65(2), pages 261-94, April.
- Kauko, K., 1996. "Effectiveness of R & D subsidies -- a sceptical note on the empirical literature," Research Policy, Elsevier, vol. 25(3), pages 321-323, May.
- Klette, T.J. & Moen, J. & Griliches, Z., 1999. "Do Subsidies to Commercial R&D Reduce Market Failures? Microeconometric Evaluation Studies," Papers 16/99, Norwegian School of Economics and Business Administration-.
- Dezhina, I. & Simachev, Yu., 2013. "Matching Grants for Stimulating Partnerships between Companies and Universities in Innovation Area: Initial Effects in Russia," Journal of the New Economic Association, New Economic Association, vol. 19(3), pages 99-122.
- Simachev, Yuri & Kuzyk, Mikhail & Ivanov, Denis, 2012. "Fostering innovation in Russian companies in the post-crisis period: Opportunities and constraints," MPRA Paper 41284, University Library of Munich, Germany.
- Marco Corsino & Roberto Gabriele & Anna Giunta, 2012. "R&D Incentives: The Effectiveness Of A Place-Based Policy," Departmental Working Papers of Economics - University 'Roma Tre' 0169, Department of Economics - University Roma Tre.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Telephone for information).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.