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Assessment of the public tools used to promote R&D investment in Spanish SMEs

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  • Desiderio Romero-Jordán
  • María Delgado-Rodríguez
  • Inmaculada Álvarez-Ayuso

    ()

  • Sonia Lucas-Santos

Abstract

In this paper, we identify the potential determinants of firm R&D to understand the effectiveness of public policies. Our results suggest a considerably low impact of tax credits and public grants on the R&D investment of the Spanish manufacturing firms. Tax credits are mainly considered by large firms that use them as a reduction in the tax burden in the corporate tax, while SMEs use public grants to alleviate financial constraints. This evidence leads to discuss alternatives to the current design of the public policies analyzed. Copyright Springer Science+Business Media New York 2014

Suggested Citation

  • Desiderio Romero-Jordán & María Delgado-Rodríguez & Inmaculada Álvarez-Ayuso & Sonia Lucas-Santos, 2014. "Assessment of the public tools used to promote R&D investment in Spanish SMEs," Small Business Economics, Springer, vol. 43(4), pages 959-976, December.
  • Handle: RePEc:kap:sbusec:v:43:y:2014:i:4:p:959-976
    DOI: 10.1007/s11187-014-9575-3
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    References listed on IDEAS

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    Cited by:

    1. 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.

    More about this item

    Keywords

    R&D; Tax credits; Public grants; Effectiveness; Panel data; C26; H32; O38; L26; L60;

    JEL classification:

    • C26 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Instrumental Variables (IV) Estimation
    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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