Innovative public procurement and R&D Subsidies: hidden treatment and new empirical evidence on the technology policy mix in a quasi-experimental setting
AbstractThis paper provides new empirical evidence about the impact of technological policies upon firms’ innovative behavior. We take into consideration the role of R&D subsidies and innovative public procurement. While the former policy tool has been both extensively discussed in the literature and empirically investigated, the latter is a growing trend, which still lacks robust empirical evidence. In this paper, we replicate existing results on R&D subsidies, we surmise fresh empirical evidence on the outcome of innovative public procurement, and we address the issue of a possible interaction among the two tools. When controlling for this interaction of public procurement, R&D subsidies cease to be as effective as reported in previous studies. Innovative public procurement seems to be more effective than R&D subsidies. Evidence suggests that the two policies provide the highest impact when they interact and that they have to be simultaneously considered. Failure in doing so might lead to biased results.
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Bibliographic InfoPaper provided by University of Turin in its series 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 Carlo Alberto. WP series with number 201218.
Length: 33 pages
Date of creation: Sep 2012
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-06-04 (All new papers)
- NEP-INO-2013-06-04 (Innovation)
- NEP-PBE-2013-06-04 (Public Economics)
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