IDEAS home Printed from https://ideas.repec.org/p/ulr/wpaper/dt-04-17.html
   My bibliography  Save this paper

Assessing the effect of public funding on private innovation investment in Uruguay

Author

Listed:
  • Felipe Berrutti

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economí­a)

  • Carlos Bianchi

    (Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economí­a)

Abstract

Despite the recent research efforts and methodological improvements, empirical evidence on the additionality effects of public innovation programs shows heterogeneous results by firm, sector, country and type of innovation. This paper assesses input additionality of public funding on private innovative investment of Uruguayan firms by applying a longitudinal analysis from 2001 to 2012. During this period, there was a dramatic increase of public innovation funds. However, the number of innovative firms remains stable and the amount of public funding for innovation at firm level is still very low. In this context, previous innovation experience appears as the most significant determinant of access to public innovation support. Moreover, we find evidence of a moderate substitution effect between public and private funds. We analyzed heterogeneous effects according to type of innovation, finding significant effects only for innovation based on acquisition of artifacts (embodied). We conclude on the main challenges of the current policy mix in Uruguay, stressing the relevance of further research lines on behavioral additionality to contribute to improve policy results.

Suggested Citation

  • Felipe Berrutti & Carlos Bianchi, 2017. "Assessing the effect of public funding on private innovation investment in Uruguay," Documentos de Trabajo (working papers) 17-04, Instituto de Economía - IECON.
    • Handle: RePEc:ulr:wpaper:dt-04-17
    as

    Download full text from publisher

    File URL: https://hdl.handle.net/20.500.12008/18978
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    public funding; input additionality; innovation survey; Uruguay;
    All these keywords.

    JEL classification:

    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ulr:wpaper:dt-04-17. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Lorenza Pérez (email available below). General contact details of provider: https://edirc.repec.org/data/ierauuy.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.