IDEAS home Printed from https://ideas.repec.org/a/prg/jnlcbr/v2020y2020i5id251p45-62.html
   My bibliography  Save this article

Are There Any Economic Impacts of Business R&D Support? The Case of the Czech Republic

Author

Listed:
  • Tomáš Ratinger
  • Vladislav Čadil
  • Sylvester Amoako Agyemang

Abstract

Evaluation of the economic impact of public research and development (R&D) support has become an integral part of the policymaking process. The paper examines the economic effects of the Czech programme TIP supporting R&D in private companies in the recent decade and aspires to contribute to the debate on quantitative methods for assessing outputs additionality of public R&D programmes. The analysis is based on the counter-factual econometric approach, because an appropriate control group could not be found among the unsupported companies, a so-called generalized propensity score matching (GPSM) was used. Two data sources were used: monitoring data of the programme TIP and economic data from the database Bisnode-MagnusWeb. The impact of R&D support on the firms' performance was measured by output indicators: gross value added, profit and productivity. Treatment effects are diverse depending on firm sizes. Generally, the R&D support effects are positive and more substantial in small and medium firms (SMEs) while there are no such effects confirmed for large firms. The support could only impact positively on the output (profit, productivity and gross value added) of small firms only after reaching a certain minimum threshold of the support whereas output diminishes for medium firms after a point of saturation. Implications for Central European audience: This paper results could be useful for policymakers and R&D funding providers because it provides evidence about the microeconomic impacts of programmes, namely it shows the differentiated effects of public interventions toby the size categories of beneficiaries. The analysis confirms that GPSM approach provides deliver logical outcomes and if the investigation is situated to the right period after the programme is accomplished, it has a potential to bring more insight in the effects than the standard dichotomous model.

Suggested Citation

  • Tomáš Ratinger & Vladislav Čadil & Sylvester Amoako Agyemang, 2020. "Are There Any Economic Impacts of Business R&D Support? The Case of the Czech Republic," Central European Business Review, Prague University of Economics and Business, vol. 2020(5), pages 45-62.
    • Handle: RePEc:prg:jnlcbr:v:2020:y:2020:i:5:id:251:p:45-62
    DOI: 10.18267/j.cebr.251
    as

    Download full text from publisher

    File URL: http://cebr.vse.cz/doi/10.18267/j.cebr.251.html
    Download Restriction: free of charge
    File URL: http://cebr.vse.cz/doi/10.18267/j.cebr.251.pdf
    Download Restriction: free of charge
    File URL: https://libkey.io/10.18267/j.cebr.251?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

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

    References listed on IDEAS

    as
    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. Ondřej Dvouletý & Stjepan Srhoj & Smaranda Pantea, 2021. "Public SME grants and firm performance in European Union: A systematic review of empirical evidence," Small Business Economics, Springer, vol. 57(1), pages 243-263, June.
    3. Jakob Edler & Paul Cunningham & Abdullah Gök & Philip Shapira (ed.), 2016. "Handbook of Innovation Policy Impact," Books, Edward Elgar Publishing, number 16121.
    Full references (including those not matched with items on IDEAS)

    Citations

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


    Cited by:

    1. Mariana Sedliačiková & Maria Moresová & Josef Drábek & Václav Kupčák, 2021. "The Significance of Controlling in Enterprises in Emerging Economies," Central European Business Review, Prague University of Economics and Business, vol. 2021(5), pages 99-113.
    2. Oleg Sidorkin & Martin Srholec, 2022. "Do Direct Subsidies Stimulate New R&D Outputs in Firms? Evidence from the Czech Republic," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(3), pages 2203-2229, September.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Peter Grajzl & Jaka Cepec & Barbara Mörec, 2023. "Weaned off public money: The effect of discontinued reception of public cash on firm outcomes," Kyklos, Wiley Blackwell, vol. 76(1), pages 41-76, February.
    2. Raphaël CHIAPPINI & Sophie POMMET, 2023. "The impact of public support for innovation on SME performance and efficiency," Bordeaux Economics Working Papers 2023-06, Bordeaux School of Economics (BSE).
    3. Dirk Czarnitzki & Julie Delanote, 2017. "Incorporating innovation subsidies in the CDM framework: empirical evidence from Belgium," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 26(1-2), pages 78-92, February.
    4. Stjepan Srhoj & Bruno Škrinjarić & Sonja Radas & Janette Walde, 2022. "Small matching grants for women entrepreneurs: lessons from the past recession," Small Business Economics, Springer, vol. 59(1), pages 117-142, June.
    5. Tea Petrin & Dragana Radicic, 2023. "Instrument policy mix and firm size: is there complementarity between R&D subsidies and R&D tax credits?," The Journal of Technology Transfer, Springer, vol. 48(1), pages 181-215, February.
    6. Joanna Stryjek, 2021. "Counteracting the COVID-19 Crisis with Innovation Policy Tools: A Case Study of the EU’s Supranational Innovation Policy," European Research Studies Journal, European Research Studies Journal, vol. 0(3), pages 450-468.
    7. Xiaoke Zhang, 2022. "Understanding innovation policy governance: A disaggregated approach," Review of Policy Research, Policy Studies Organization, vol. 39(3), pages 303-329, May.
    8. Stjepan Srhoj & Michael Lapinski & Janette Walde, 2019. "Size matters? Impact evaluation of business development grants on SME performance," Working Papers 2019-14, Faculty of Economics and Statistics, Universität Innsbruck.
    9. Ernesto del Castillo & René Cabral & Eduardo Saucedo, 2022. "The Sustainability of Mexican Municipal Public Debt," Sustainability, MDPI, vol. 14(11), pages 1-14, May.
    10. Hiroyuki Okamuro & Junichi Nishimura, 2021. "Effects of multilevel policy mix of public R&D subsidies: Empirical evidence from Japanese local SMEs [The Impact of R&D Subsidies on R&D Employment Composition]," Science and Public Policy, Oxford University Press, vol. 48(6), pages 829-840.
    11. Srhoj, Stjepan & Dragojević, Melko, 2021. "Public procurement and supplier job creation: Insights from auctions," MPRA Paper 110018, University Library of Munich, Germany.
    12. Edward I. Altman & Marco Balzano & Alessandro Giannozzi & Stjepan Srhoj, 2023. "Revisiting SME default predictors: The Omega Score," Journal of Small Business Management, Taylor & Francis Journals, vol. 61(6), pages 2383-2417, November.
    13. Colombelli, Alessandra & Krafft, Jackie & Vivarelli, Marco, 2016. "New Firms and Post-Entry Performance: The Role of Innovation," Department of Economics and Statistics Cognetti de Martiis. Working Papers 201602, University of Turin.
    14. Bart Cockx & Sam Desiere, 2023. "Labour costs and the decision to hire the first employee," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 23/1071, Ghent University, Faculty of Economics and Business Administration.
    15. Zhang, Hongyan & Zhang, Lin, 2023. "Public support and energy innovation: Why do firms react differently?," Energy Economics, Elsevier, vol. 119(C).
    16. Ricard Esparza-Masana, 2022. "Towards Smart Specialisation 2.0. Main Challenges When Updating Strategies," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 13(1), pages 635-655, March.
    17. Liotard, Isabelle & Revest, Valérie, 2018. "Contests as innovation policy instruments: Lessons from the US federal agencies' experience," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 57-69.
    18. Albert Bravo-Biosca, 2020. "Experimental Innovation Policy," Innovation Policy and the Economy, University of Chicago Press, vol. 20(1), pages 191-232.
    19. Busu, Mihail & Caraiani, Petre & Hadad, Shahrazad & Incze, Cynthia Bianka & Vargas, Madalina Vanesa, 2021. "The performance of publicly funded startups in Romania," Economic Systems, Elsevier, vol. 45(3).
    20. Haico te Kulve & Wouter Boon & Kornelia Konrad & Tjerk Jan Schuitmaker, 2018. "Influencing the direction of innovation processes: the shadow of authorities in demand articulation," Science and Public Policy, Oxford University Press, vol. 45(4), pages 455-467.

    More about this item

    Keywords

    R& D support; economic impacts; econometric approaches; generalized propensity score matching;
    All these keywords.

    JEL classification:

    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
    • 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

    Statistics

    Access and download statistics

    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:prg:jnlcbr:v:2020:y:2020:i:5:id:251:p:45-62. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Stanislav Vojir (email available below). General contact details of provider: https://edirc.repec.org/data/uevsecz.html .

    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.