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Public funding for startups in Argentina: an impact evaluation

Author

Listed:
  • Inés Butler

    (IERAL)

  • Gabriela Galassi

    (European University Institute)

  • Hernán Ruffo

    () (Universidad Torcuato Di Tella)

Abstract

Abstract A broad literature has found that the misallocation of entrepreneurial talent has strong effects on productivity. To investigate whether the government can improve entrepreneurial activity, we analyze a policy aimed at promoting innovative startups through the provision of funding and technical assistance to potential entrepreneurs in Buenos Aires, Argentina. We conduct a survey and use regression discontinuity methods to identify the effects of the policy. We find significant effects on enterprise creation and survival as well as on employment. Overall, we show that small-scale public policy can help entrepreneurs overcome a wide variety of barriers to firm entry and improve the allocation of their entrepreneurial talent.

Suggested Citation

  • Inés Butler & Gabriela Galassi & Hernán Ruffo, 2016. "Public funding for startups in Argentina: an impact evaluation," Small Business Economics, Springer, vol. 46(2), pages 295-309, February.
  • Handle: RePEc:kap:sbusec:v:46:y:2016:i:2:d:10.1007_s11187-015-9684-7
    DOI: 10.1007/s11187-015-9684-7
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    Cited by:

    1. Stjepan Srhoj & Bruno Škrinjarić & Sonja Radas, 2018. "Bidding against the odds? The impact evaluation of grants for young micro and small firms during the recession," Working Papers 374, Leibniz Institut für Ost- und Südosteuropaforschung (Institute for East and Southeast European Studies).
    2. Sá, Elisabete S. & Pinho, José Carlos M.R. de, 2019. "Effect of entrepreneurial framework conditions on R&D transfer to new and growing firms: The case of European Union innovation-driven countries," Technological Forecasting and Social Change, Elsevier, vol. 141(C), pages 47-58.
    3. Grant H. Lewis, 2017. "Effects of federal socioeconomic contracting preferences," Small Business Economics, Springer, vol. 49(4), pages 763-783, December.

    More about this item

    Keywords

    Innovation; Entry; Exit; Cash grants; Impact evaluation; Argentina;

    JEL classification:

    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • H25 - Public Economics - - Taxation, Subsidies, and Revenue - - - Business Taxes and Subsidies
    • L26 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Entrepreneurship
    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives

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