IDEAS home Printed from https://ideas.repec.org/a/oup/scippl/v46y2019i2p173-183..html
   My bibliography  Save this article

Public support for firms in lagging regions—evaluation of innovation subsidy in Slovakia

Author

Listed:
  • Valeria Nemethova
  • Maria Siranova
  • Miroslav Sipikal

Abstract

This article evaluates effectiveness of EU regional policy-promoting innovation and competitiveness aimed at direct support of private companies in less developed EU regions in Slovakia. By using unique set of firm microdata, we test the effectiveness of this measure with panel data fixed estimator within the framework of Cobb–Douglas production function. We found positive and significant impact on labour productivity that disappears shortly after 1 year following subsidy allocation. By specifying the optimal amount of aid, we find that majority of supported firms could benefit from bigger subsidy size, thus justifying a call for ‘more music for more money’ policy.

Suggested Citation

  • Valeria Nemethova & Maria Siranova & Miroslav Sipikal, 2019. "Public support for firms in lagging regions—evaluation of innovation subsidy in Slovakia," Science and Public Policy, Oxford University Press, vol. 46(2), pages 173-183.
  • Handle: RePEc:oup:scippl:v:46:y:2019:i:2:p:173-183.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/scipol/scy046
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Yanfeng Lou & Yezhuang Tian & Kai Wang, 2020. "The Spillover Effect of US Industrial Subsidies on China’s Exports," Sustainability, MDPI, vol. 12(7), pages 1-12, April.
    2. Pu‐Yan Nie & Xu Xiao & Chan Wang & Ting Cui, 2020. "Innovation subsidy under duopoly," Managerial and Decision Economics, John Wiley & Sons, Ltd., vol. 41(3), pages 362-370, April.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:scippl:v:46:y:2019:i:2:p:173-183.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/spp .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.