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Does the R&D Public Procurement Matter for High-Tech Exports? Evidence from the USA

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  • Dina Dardir

    (Cairo University, FEPS - Faculty of Economics and Political Science, UP1 - Université Paris 1 Panthéon-Sorbonne)

Abstract

Recently, demand-side innovation policies have succeeded in stimulating technology upgrading in many countries around the world. Especially, public procurement has become a major and important industrial policy for achieving technological development and competitiveness. This paper examines empirically the impact of R&D public procurement (innovative public procurement) on high-tech exports of 50 U.S. states and the District of Columbia over the period 2000-2008. The econometric analysis relies on panel fixed-effects estimations and an instrumental variable approach to investigate the causal effect of the R&D public procurement on high-tech exports. Based on a unique panel dataset of federal procurement in the USA, the empirical results show that there is a positive and statistically significant effect of R&D federal procurement on high-tech exports. The results of this paper confirm the importance and effectiveness of R&D public procurement as a policy to enhance technological competitiveness. The results are robust using various robustness checks. Moreover, this paper also shows three potential mechanisms through which R&D public procurement may affect high-tech exports.

Suggested Citation

  • Dina Dardir, 2020. "Does the R&D Public Procurement Matter for High-Tech Exports? Evidence from the USA," Post-Print hal-04048942, HAL.
    • Handle: RePEc:hal:journl:hal-04048942
    Note: View the original document on HAL open archive server: https://inria.hal.science/hal-04048942
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    References listed on IDEAS

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