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Innovation capabilities in the private sector: evaluating subsidies for hiring s&t workers in Spain

Author

Listed:
  • Catalina Martínez
  • Laura Cruz-Castro
  • Luis Sanz-Menéndez

Abstract

This paper evaluates the effectiveness of a public programme intended to improve innovation capabilities in the private sector by subsidizing the hiring of R&D personnel. Using information from the programme management database, we study factors associated with the duration of contracts and their transformation into open-ended contracts, a basic aim of the programme. We explore the characteristics of subsidies, individuals, entities and projects related to the eventual stabilization of the new R&D employees, when the subsidies had ended. The programme was found to strengthen R&D capacity in recipient firms - above all in technology centres - yet only about half of the subsidized short term contracts had been converted into permanent contracts by the end of their second year.

Suggested Citation

  • Catalina Martínez & Laura Cruz-Castro & Luis Sanz-Menéndez, 2015. "Innovation capabilities in the private sector: evaluating subsidies for hiring s&t workers in Spain," Working Papers 1510, Instituto de Políticas y Bienes Públicos (IPP), CSIC.
  • Handle: RePEc:ipp:wpaper:1510
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    References listed on IDEAS

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    1. José Ángel Zúñiga-Vicente & César Alonso-Borrego & Francisco J. Forcadell & José I. Galán, 2014. "Assessing The Effect Of Public Subsidies On Firm R&D Investment: A Survey," Journal of Economic Surveys, Wiley Blackwell, vol. 28(1), pages 36-67, February.
    2. Xulia González & Jordi Jaumandreu & Consuelo Pazo, 2005. "Barriers to Innovation and Subsidy Effectiveness," RAND Journal of Economics, The RAND Corporation, vol. 36(4), pages 930-949, Winter.
    3. Acemoglu, Daron & Pischke, Jorn-Steffen, 1999. "Beyond Becker: Training in Imperfect Labour Markets," Economic Journal, Royal Economic Society, vol. 109(453), pages 112-142, February.
    4. Isabel Busom, 2000. "An Empirical Evaluation of The Effects of R&D Subsidies," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 9(2), pages 111-148.
    5. Russell Thomson & Paul H. Jensen, 2010. "The Effects of Public Subsidies on R&D Employment: Evidence from OECD Countries," Melbourne Institute Working Paper Series wp2010n11, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    6. Mowery, David C & Oxley, Joanne E, 1995. "Inward Technology Transfer and Competitiveness: The Role of National Innovation Systems," Cambridge Journal of Economics, Oxford University Press, vol. 19(1), pages 67-93, February.
    7. Martínez Ros, Ester & Corchuelo, Beatriz, 2008. "Aplicación de los incentivos fiscales a la inversión en I+D en las empresas españolas," DEE - Documentos de Trabajo. Economía de la Empresa. DB db080101, Universidad Carlos III de Madrid. Departamento de Economía de la Empresa.
    8. Georghiou, Luke & Roessner, David, 2000. "Evaluating technology programs: tools and methods," Research Policy, Elsevier, vol. 29(4-5), pages 657-678, April.
    9. Richard Williams, 2006. "Generalized ordered logit/partial proportional odds models for ordinal dependent variables," Stata Journal, StataCorp LP, vol. 6(1), pages 58-82, March.
    10. José García-Quevedo, 2004. "Do Public Subsidies Complement Business R&D? A Meta-Analysis of the Econometric Evidence," Kyklos, Wiley Blackwell, vol. 57(1), pages 87-102, February.
    11. Hall, Bronwyn & Van Reenen, John, 2000. "How effective are fiscal incentives for R&D? A review of the evidence," Research Policy, Elsevier, vol. 29(4-5), pages 449-469, April.
    Full references (including those not matched with items on IDEAS)

    More about this item

    Keywords

    Programme evaluation; company R&D and innovation; S&T employment; innovation policy; Spain;

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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