IDEAS home Printed from https://ideas.repec.org/p/idb/ovewps/0108.html
   My bibliography  Save this paper

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

Author

Listed:
  • Bronwyn H. Hall

    () (of California at Berkeley and University of Maastricht)

  • Alessandro Maffioli

    () (Inter-American Development Bank)

Abstract

The paper surveys impact evaluations of government Technology Development Funds (TDF) 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. TDF effectiveness is found to depend on the financing mechanism used, on the presence of non-financial constraints, on firm-university interaction, and on the characteristics of the target beneficiaries. 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 TDF do not crowd out private investment and that they positively affect R&D intensity. In addition, participation in TDF induces a more proactive attitude of beneficiary firms towards innovation activities. However, the analysis does not find much statistically significant impact on patents or new product sales and the evidence on firm performance is mixed, with positive results in terms of firm growth, but little corresponding positive impact on measures of firm productivity.

Suggested Citation

  • Bronwyn H. Hall & Alessandro Maffioli, 2008. "Evaluating the Impact of Technology Development Funds in Emerging Economies: Evidence from Latin America," OVE Working Papers 0108, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
  • Handle: RePEc:idb:ovewps:0108
    as

    Download full text from publisher

    File URL: http://idbdocs.iadb.org/WSDocs/getdocument.aspx?docnum=1404775&Cache=True
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. A. Smith, Jeffrey & E. Todd, Petra, 2005. "Does matching overcome LaLonde's critique of nonexperimental estimators?," Journal of Econometrics, Elsevier, vol. 125(1-2), pages 305-353.
    2. Bronwyn Hall, 2004. "The financing of research and development," Chapters, in: Anthony Bartzokas & Sunil Mani (ed.), Financial Systems, Corporate Investment in Innovation, and Venture Capital, chapter 2, Edward Elgar Publishing.
    3. Richard Blundell & Monica Costa Dias, 2009. "Alternative Approaches to Evaluation in Empirical Microeconomics," Journal of Human Resources, University of Wisconsin Press, vol. 44(3).
    4. José Miguel Benavente & José De Gregorio & Marco Núñez, 2006. "Rates of Return for Industrial R&D in Chile," Working Papers wp220, University of Chile, Department of Economics.
    5. Teubal, Morris, 1996. "R&D and technology policy in NICs as learning processes," World Development, Elsevier, vol. 24(3), pages 449-460, March.
    6. Zvi Griliches, 1984. "R&D, Patents, and Productivity," NBER Books, National Bureau of Economic Research, Inc, number gril84-1.
    7. 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.
    8. 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.
    9. 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.
    10. Velho, Lea, 2004. "Science and Technology in Latin America and the Caribbean: An Overview," UNU-INTECH Discussion Paper Series 2004-04, United Nations University - INTECH.
    11. David, Paul A. & Hall, Bronwyn H. & Toole, Andrew A., 2000. "Is public R&D a complement or substitute for private R&D? A review of the econometric evidence," Research Policy, Elsevier, vol. 29(4-5), pages 497-529, April.
    12. 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.
    13. Heckman, James J. & Lalonde, Robert J. & Smith, Jeffrey A., 1999. "The economics and econometrics of active labor market programs," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 31, pages 1865-2097, Elsevier.
    14. Bruno Crepon & Emmanuel Duguet & Jacques Mairesse, 1998. "Research, Innovation And Productivity: An Econometric Analysis At The Firm Level," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 7(2), pages 115-158.
    15. Zvi Griliches, 1984. "Introduction to "R & D, Patents, and Productivity"," NBER Chapters, in: R&D, Patents, and Productivity, pages 1-20, National Bureau of Economic Research, Inc.
    16. Richard R. Nelson, 1959. "The Simple Economics of Basic Scientific Research," Journal of Political Economy, University of Chicago Press, vol. 67, pages 297-297.
    17. Adam B. Jaffe, 2002. "Building Programme Evaluation into the Design of Public Research-Support Programmes," Oxford Review of Economic Policy, Oxford University Press, vol. 18(1), pages 22-34, Spring.
    18. Martin, Stephen & Scott, John T., 2000. "The nature of innovation market failure and the design of public support for private innovation," Research Policy, Elsevier, vol. 29(4-5), pages 437-447, April.
    19. David De Ferranti & Guillermo E. Perry & Indermit Gill & J. Luis Guasch & William F. Maloney & Carolina Sanchez-Paramo & Norbert Schady, 2003. "Closing the Gap in Education and Technology," World Bank Publications, The World Bank, number 15168, June.
    20. 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," IDB Publications (Working Papers) 24578, Inter-American Development Bank.
    21. 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.
    22. De Negri, JoaÞo Alberto & Lemos, Mauro Borges & De Negri, Fernanda, 2011. "The Impact of University Enterprise Incentive Program on the Performance and Technological Efforts of Brazilian Industrial Firms," IDB Publications (Working Papers) 2916, Inter-American Development Bank.
    23. João Alberto De Negri & Mauro Borges Lemos & Fernanda De Negri, 2006. "The Impact of University Enterprise Incentive Program on the Performance and Technological Efforts of Brazilian Industrial Firms," OVE Working Papers 1306, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    24. João Alberto De Negri & Mauro Borges Lemos & Fernanda De Negri, 2006. "The Impact of University Enterprise Incentive Program on the Performance and Technological Efforts of Brazilian Industrial Firms," IDB Publications (Working Papers) 24618, Inter-American Development Bank.
    25. Morris Teubal, 2002. "special issue: What is the systems perspective to Innovation and Technology Policy(ITP) and how can we apply it to developing and newly industrialized economies?," Journal of Evolutionary Economics, Springer, vol. 12(1), pages 233-257.
    26. Guillermo Perry, 2003. "Closing the Gap in Education and Technology," World Bank Other Operational Studies 10384, The World Bank.
    27. De Negri, JoaÞo Alberto & Lemos, Mauro Borges & De Negri, Fernanda, 2011. "Impact of P&D Incentive Program on the Performance and Technological Efforts of Brazilian Industrial Firms," IDB Publications (Working Papers) 2904, Inter-American Development Bank.
    28. 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).
    29. repec:crs:wpaper:9833 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    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. Daniel Chudnovsky & Andrés López & Martín Rossi & Diego Ubfal, 2006. "Evaluating A Program of Public Funding of Private Innovation Activities. An Econometric Study of FONTAR in Argentina," OVE Working Papers 1606, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    2. Sanginés, Mario & Prats Cabrera, Joan Oriol & Pimenta, Carlos & García Osío, Gustavo & Martínez Guzman, Juan Pablo & Marcel, Mario & Farias, Pedro & Crespi, Gustavo & Chrisney, Martin D. & Corbacho, A, 2013. "The Fiscal Institutions of Tomorrow," IDB Publications (Books), Inter-American Development Bank, number 460, February.
    3. Özçelik, Emre & Taymaz, Erol, 2008. "R&D support programs in developing countries: The Turkish experience," Research Policy, Elsevier, vol. 37(2), pages 258-275, March.
    4. Beck, Mathias & Lopes-Bento, Cindy & Schenker-Wicki, Andrea, 2016. "Radical or incremental: Where does R&D policy hit?," Research Policy, Elsevier, vol. 45(4), pages 869-883.
    5. Carboni, Oliviero A., 2017. "The effect of public support on investment and R&D: An empirical evaluation on European manufacturing firms," Technological Forecasting and Social Change, Elsevier, vol. 117(C), pages 282-295.
    6. Mario Sanginés & Joan Oriol Prats Cabrera & Carlos Pimenta & Gustavo García Osío & Juan Pablo Martínez Guzman & Mario Marcel & Pedro Farias & Gustavo Crespi & Martin D. Chrisney & Ana Corbacho, 2013. "The Fiscal Institutions of Tomorrow," IDB Publications (Books), Inter-American Development Bank, number 82298 edited by Ana Corbacho, February.
    7. Czarnitzki, Dirk & Hanel, Petr & Rosa, Julio Miguel, 2011. "Evaluating the impact of R&D tax credits on innovation: A microeconometric study on Canadian firms," Research Policy, Elsevier, vol. 40(2), pages 217-229, March.
    8. Daniel Chudnovsky & Andrés López & Martín Rossi & Diego Ubfal, 2006. "Evaluating a Program of Public Funding of Scientific Activity. A Case Study of FONCYT in Argentina," OVE Working Papers 1206, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    9. Wang, Yanbo & Li, Jizhen & Furman, Jeffrey L., 2017. "Firm performance and state innovation funding: Evidence from China’s innofund program," Research Policy, Elsevier, vol. 46(6), pages 1142-1161.
    10. Clausen, Tommy H., 2009. "Do subsidies have positive impacts on R&D and innovation activities at the firm level?," Structural Change and Economic Dynamics, Elsevier, vol. 20(4), pages 239-253, December.
    11. Spyros Arvanitis, 2013. "Micro-econometric approaches to the evaluation of technology-oriented public programmes: a non-technical review of the state of the art," Chapters, in: Albert N. Link & Nicholas S. Vonortas (ed.), Handbook on the Theory and Practice of Program Evaluation, chapter 3, pages 56-88, Edward Elgar Publishing.
    12. Heshmati, Almas & Loof, Hans, 2005. "The Impact of Public Funds on Private R&D Investment: New Evidence from a Firm Level Innovation Study," Discussion Papers 11862, MTT Agrifood Research Finland.
    13. 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.
    14. Ivano D'Antonio & Alessandro De Iudicibus & Giuseppe Piroli & Francesco Savoia, 2014. "Ricerca e innovazione in campania: una valutazione controfattuale della politica di coesione," STUDI ECONOMICI, FrancoAngeli Editore, vol. 2014(113), pages 61-87.
    15. Hall, Bronwyn H. & Lerner, Josh, 2010. "The Financing of R&D and Innovation," Handbook of the Economics of Innovation, in: Bronwyn H. Hall & Nathan Rosenberg (ed.), Handbook of the Economics of Innovation, edition 1, volume 1, chapter 0, pages 609-639, Elsevier.
    16. Vlasova, Valeriya, 2021. "Industry-science cooperation and public policy instruments utilization in the private sector," Journal of Business Research, Elsevier, vol. 124(C), pages 519-528.
    17. Czarnitzki, Dirk & Lopes-Bento, Cindy, 2013. "Value for money? New microeconometric evidence on public R&D grants in Flanders," Research Policy, Elsevier, vol. 42(1), pages 76-89.
    18. Hottenrott, Hanna & Lopes-Bento, Cindy, 2014. "(International) R&D collaboration and SMEs: The effectiveness of targeted public R&D support schemes," Research Policy, Elsevier, vol. 43(6), pages 1055-1066.
    19. Christian Volpe Martincus & Jerónimo Carballo, 2010. "Entering new country and product markets: does export promotion help?," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 146(3), pages 437-467, September.
    20. Christian Volpe Martincus & Jerónimo Carballo, 2012. "Export promotion activities in developing countries: What kind of trade do they promote?," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 21(4), pages 539-578, June.

    More about this item

    Keywords

    Innovation and R&D; Policy Evalution;

    JEL classification:

    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:idb:ovewps:0108. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Felipe Herrera Library). General contact details of provider: https://edirc.repec.org/data/iadbbus.html .

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.