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R&D subsidies and the performance of high-tech start-ups

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  • Colombo, Massimo G.
  • Grilli, Luca
  • Murtinu, Samuele

Abstract

This paper addresses the question of the efficacy of R&D policy measures in support of high-tech start-ups. We show that subsidies awarded on a competitive basis lead to a positive effect, while those assigned through an automatic procedure do not.

Suggested Citation

  • Colombo, Massimo G. & Grilli, Luca & Murtinu, Samuele, 2011. "R&D subsidies and the performance of high-tech start-ups," Economics Letters, Elsevier, vol. 112(1), pages 97-99, July.
  • Handle: RePEc:eee:ecolet:v:112:y:2011:i:1:p:97-99
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    References listed on IDEAS

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    4. Colombo, Massimo G. & Grilli, Luca & Piva, Evila, 2006. "In search of complementary assets: The determinants of alliance formation of high-tech start-ups," Research Policy, Elsevier, vol. 35(8), pages 1166-1199, October.
    5. John G. Fernald, 1999. "Roads to Prosperity? Assessing the Link between Public Capital and Productivity," American Economic Review, American Economic Association, vol. 89(3), pages 619-638, June.
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    7. Lerner, Josh, 1999. "The Government as Venture Capitalist: The Long-Run Impact of the SBIR Program," The Journal of Business, University of Chicago Press, vol. 72(3), pages 285-318, July.
    8. James Levinsohn & Amil Petrin, 2003. "Estimating Production Functions Using Inputs to Control for Unobservables," Review of Economic Studies, Oxford University Press, vol. 70(2), pages 317-341.
    9. Semykina, Anastasia & Wooldridge, Jeffrey M., 2010. "Estimating panel data models in the presence of endogeneity and selection," Journal of Econometrics, Elsevier, vol. 157(2), pages 375-380, August.
    10. Girma, Sourafel & Gorg, Holger & Strobl, Eric, 2007. "The effect of government grants on plant level productivity," Economics Letters, Elsevier, vol. 94(3), pages 439-444, March.
    11. Stephen Bond, 2002. "Dynamic panel data models: a guide to microdata methods and practice," CeMMAP working papers CWP09/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
    12. Robert E. Carpenter & Bruce C. Petersen, 2002. "Capital Market Imperfections, High-Tech Investment, and New Equity Financing," Economic Journal, Royal Economic Society, vol. 112(477), pages 54-72, February.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Dirk Czarnitzki & Julie Delanote, 2015. "R&D policies for young SMEs: input and output effects," Small Business Economics, Springer, vol. 45(3), pages 465-485, October.
    2. Hottenrott, Hanna & Demeulemeester, Sarah, 2017. "R&D Subsidies and Firms’ Cost of Debt," Annual Conference 2017 (Vienna): Alternative Structures for Money and Banking 168093, Verein für Socialpolitik / German Economic Association.
    3. Demeulemeester, Sarah & Hottenrott, Hanna, 2015. "R&D subsidies and firms' cost of debt," DICE Discussion Papers 201, University of Düsseldorf, Düsseldorf Institute for Competition Economics (DICE).
    4. Francesco Aiello & Giuseppe Albanese & Paolo Piselli, 2017. "Public R&D Support In Italy. Evidence From A New Firm-Level Patent Data Set," Working Papers 201702, Università della Calabria, Dipartimento di Economia, Statistica e Finanza "Giovanni Anania" - DESF.
    5. Matsumura, Toshihiro & Matsushima, Noriaki, 2012. "Welfare properties of strategic R&D investments in Hotelling models," Economics Letters, Elsevier, vol. 115(3), pages 465-468.
    6. repec:eee:respol:v:46:y:2017:i:8:p:1465-1478 is not listed on IDEAS
    7. Fabio Bertoni & Massimo Colombo & Luca Grilli, 2013. "Venture capital investor type and the growth mode of new technology-based firms," Small Business Economics, Springer, vol. 40(3), pages 527-552, April.
    8. Massimo Colombo & Annalisa Croce & Samuele Murtinu, 2014. "Ownership structure, horizontal agency costs and the performance of high-tech entrepreneurial firms," Small Business Economics, Springer, vol. 42(2), pages 265-282, February.
    9. Bronzini, Raffaello & Piselli, Paolo, 2016. "The impact of R&D subsidies on firm innovation," Research Policy, Elsevier, vol. 45(2), pages 442-457.
    10. Simona Mateut, 2015. "Subsidies, financial constraints and firm innovative activities in developing economies," Discussion Papers 2015/11, University of Nottingham, Centre for Finance, Credit and Macroeconomics (CFCM).
    11. Colombo, Massimo G. & Croce, Annalisa & Guerini, Massimiliano, 2013. "The effect of public subsidies on firms’ investment–cash flow sensitivity: Transient or persistent?," Research Policy, Elsevier, vol. 42(9), pages 1605-1623.
    12. Yuri Simachev & Mikhail Kuzyk & Vera Feygina, 2015. "Public Support for Innovation in Russian Firms: Looking for Improvements in Corporate Performance Quality," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 21(1), pages 13-31, March.
    13. Dan Andrews & Chiara Criscuolo, 2013. "Knowledge-Based Capital, Innovation and Resource Allocation," OECD Economics Department Working Papers 1046, OECD Publishing.
    14. Luca Grilli & Samuele Murtinu, 2011. "Econometric Evaluation of Public Policies for Science and Innovation: A Brief Guide to Practice," Chapters,in: Science and Innovation Policy for the New Knowledge Economy, chapter 3 Edward Elgar Publishing.
    15. repec:kap:iaecre:v:21:y:2015:i:1:p:13-31 is not listed on IDEAS
    16. Bogner, Kristina, 2015. "The effect of project funding on innovative performance: An agent-based simulation model," Hohenheim Discussion Papers in Business, Economics and Social Sciences 10-2015, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    17. Grilli, Luca & Murtinu, Samuele, 2014. "Government, venture capital and the growth of European high-tech entrepreneurial firms," Research Policy, Elsevier, vol. 43(9), pages 1523-1543.
    18. Jacob, Martin & Johan, Sofia & Schweizer, Denis & Zhan, Feng, 2016. "Corporate finance and the governance implications of removing government support programs," Journal of Banking & Finance, Elsevier, vol. 63(C), pages 35-47.
    19. Köhler, Christian & Larédo, Philippe & Rammer, Christian, 2012. "Fiscal incentives for business R&D: Compendium of evidence on the effectiveness of innovation policy intervention," ZEW Expertises, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research, number 111472.
    20. Matteo Bugamelli & Luigi Cannari & Francesca Lotti & Silvia Magri, 2012. "The innovation gap of Italy�s production system: roots and possible solutions," Questioni di Economia e Finanza (Occasional Papers) 121, Bank of Italy, Economic Research and International Relations Area.
    21. Dai, Xiaoyong & Cheng, Liwei, 2015. "The effect of public subsidies on corporate R&D investment: An application of the generalized propensity score," Technological Forecasting and Social Change, Elsevier, vol. 90(PB), pages 410-419.
    22. Croce, Annalisa & Martí, José & Murtinu, Samuele, 2013. "The impact of venture capital on the productivity growth of European entrepreneurial firms: ‘Screening’ or ‘value added’ effect?," Journal of Business Venturing, Elsevier, vol. 28(4), pages 489-510.

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