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Linking public support, R&D, innovation and productivity: New evidence from the Spanish food industry

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  • Acosta, Manuel
  • Coronado, Daniel
  • Romero, Carlos

Abstract

This research provides novel empirical evidence of the relationship between public support for R&D, firms’ R&D expenditure, innovation and productivity in the Food and Beverage (F&B) industry. The empirical framework relies on a modified version of the Crépon–Duguet–Mairesse (CDM) model, applied to a sample of 541 Spanish firms over the years from 2008 to 2011 (1910 observations). The first step in our model shows a great impact of public funding; firms receiving national funds invested 54% more in R&D than firms without this type of public support. The share of workers with a degree, and cooperation among firms are also relevant for engaging in R&D in the F&B industry. The second step points out the significant role of R&D expenditure for product and organizational innovation, while we did not find any significant effect for process innovation. The final step reveals that innovation output influences productivity with an elasticity of 0.29 for the innovation variable. Other significant factors affecting labour productivity are the size of the company, investment intensity, international competition, and having foreign participation of over 50% in the company.

Suggested Citation

  • Acosta, Manuel & Coronado, Daniel & Romero, Carlos, 2015. "Linking public support, R&D, innovation and productivity: New evidence from the Spanish food industry," Food Policy, Elsevier, vol. 57(C), pages 50-61.
  • Handle: RePEc:eee:jfpoli:v:57:y:2015:i:c:p:50-61
    DOI: 10.1016/j.foodpol.2015.09.005
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    4. Cristian Barra & Ornella Wanda Maietta & Roberto Zotti, 2017. "First, Second and Third Tier Universities: Academic Excellence, Local Knowledge Spillovers and Innovation in Europe," CSEF Working Papers 468, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
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    6. Greco, Marco & Grimaldi, Michele & Cricelli, Livio, 2017. "Hitting the nail on the head: Exploring the relationship between public subsidies and open innovation efficiency," Technological Forecasting and Social Change, Elsevier, vol. 118(C), pages 213-225.
    7. Ornella W. Maietta & Cristian Barra & Roberto Zotti, 2017. "Innovation and University-Firm R&D Collaboration in the European Food and Drink Industry," Journal of Agricultural Economics, Wiley Blackwell, vol. 68(3), pages 749-780, September.

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