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Evaluating the Impact of Technology Development Funds in Emerging Economies: Evidence from Latin-America

  • Bronwyn H. Hall
  • Alessandro Maffioli

This working paper surveys impact evaluations of government Technology Development Funds (TDFs) in Argentina, Brazil, Chile and Panama. All the evaluations were done at the recipient (firm) level using data from innovation surveys, industrial surveys, and administrative records of the granting units, together with quasi-experimental econometric techniques to minimize the effects of any selection bias. The surveyed evaluations considered four levels of potential impact: R&D input additionality, behavioural additionality, increases in innovative output, and improvements in performance. The evidence suggests that TDFs do not crowd out private investment and that they positively affect R&D intensity. In addition, participation in TDFs induces a more proactive attitude of beneficiary firms towards innovation activities.

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Paper provided by Inter-American Development Bank in its series IDB Publications (Working Papers) with number 24638.

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Date of creation: Jan 2008
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Handle: RePEc:idb:brikps:24638
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  1. Paul A. David & Bronwyn H. Hall & Andrew A. Toole, 2000. "Is Public R&D a Complement or Substitute for Private R&D? A Review of the Econometric Evidence," Development and Comp Systems 9912002, EconWPA.
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  7. Ariel Pakes & Zvi Griliches, 1984. "Patents and R&D at the Firm Level: A First Look," NBER Chapters, in: R&D, Patents, and Productivity, pages 55-72 National Bureau of Economic Research, Inc.
  8. Blundell, Richard & Costa Dias, Monica, 2008. "Alternative Approaches to Evaluation in Empirical Microeconomics," IZA Discussion Papers 3800, Institute for the Study of Labor (IZA).
  9. Bronwyn H. Hall, 2003. "The Financing of Research and Development," Finance 0303003, EconWPA.
  10. João Alberto De Negri & Mauro Borges Lemos & Fernanda De Negri, 2006. "Impact of P&D Incentive Program on the Performance and Technological Efforts of Brazilian Industrial Firms," OVE Working Papers 1406, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
  11. Kenneth Arrow, 1962. "Economic Welfare and the Allocation of Resources for Invention," NBER Chapters, in: The Rate and Direction of Inventive Activity: Economic and Social Factors, pages 609-626 National Bureau of Economic Research, Inc.
  12. Jeffrey Smith & Petra Todd, 2003. "Does Matching Overcome Lalonde's Critique of Nonexperimental Estimators?," University of Western Ontario, Centre for Human Capital and Productivity (CHCP) Working Papers 20035, University of Western Ontario, Centre for Human Capital and Productivity (CHCP).
  13. Stephen Martin & John T. Scott, 1999. "The Nature of Innovation Market Failure and the Design of Public Support for Private Innovation," CIE Discussion Papers 1999-02, University of Copenhagen. Department of Economics. Centre for Industrial Economics.
  14. Klette, Tor Jakob & Moen, Jarle & Griliches, Zvi, 2000. "Do subsidies to commercial R&D reduce market failures? Microeconometric evaluation studies1," Research Policy, Elsevier, vol. 29(4-5), pages 471-495, April.
  15. repec:crs:wpaper:9833 is not listed on IDEAS
  16. Chiara Binelli & Alessandro Maffioli, 2007. "A Micro-econometric Analysis of Public Support to Private R&D in Argentina," International Review of Applied Economics, Taylor & Francis Journals, vol. 21(3), pages 339-359.
  17. Alessandro Maffioli, 2005. "The Formation of Network and Public Intervention: Theory and Evidence from the Chilean Experience," ISLA Working Papers 23, ISLA, Centre for research on Latin American Studies and Transition Economies, Universita' Bocconi, Milano, Italy, revised May 2005.
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