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National or international public funding? Subsidies or loans? Evaluating the innovation impact of R&D support programmes

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  • Huergo, Elena
  • Moreno, Lourdes

Abstract

The objective of this study is to compare the effect of different types of public support for R&D projects on firms’ technological capabilities. We distinguish be-tween low-interest loans and subsidies and between national and European sup-port. Using data on 4,407 Spanish firms during the period 2002-2005, we estimate a multivariate probit to analyse the determinants of firms’ participation in public R&D programmes and, later, the impact of this participation on firms’ technologi-cal capabilities using different indicators. The results provide evidence of the ef-fectiveness of all treatments for improving firms’ innovative performance. With respect to innovation outputs, apart from the indirect effect of public support by stimulating R&D intensity, we also find evidence of a direct effect of participation in the CDTI credit system and in the European subsidy programme on the probability of obtaining innovations and applying for patents.

Suggested Citation

  • Huergo, Elena & Moreno, Lourdes, 2014. "National or international public funding? Subsidies or loans? Evaluating the innovation impact of R&D support programmes," MPRA Paper 64926, University Library of Munich, Germany, revised 28 May 2015.
  • Handle: RePEc:pra:mprapa:64926
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    References listed on IDEAS

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    1. repec:spr:cejnor:v:25:y:2017:i:4:d:10.1007_s10100-016-0461-8 is not listed on IDEAS
    2. Angioloni, Simone & Kudabaev, Zarylbek & Ames, Glenn & Wetzstein, Michael, 2015. "Household Allocation of Microfinance Loans in Kyrgyzstan," 2015 Conference, August 9-14, 2015, Milan, Italy 210949, International Association of Agricultural Economists.
    3. Giuseppina Testa & Katarzyna Szkuta, 2018. "Improving access to finance for young innovative enterprises with growth potential: evidence of impact on firms' output - Part 2. R&D grant schemes: lessons learned from evaluations," JRC Working Papers JRC109879, Joint Research Centre (Seville site).
    4. Edina Berlinger & Anita Lovas & Péter Juhász, 2017. "State subsidy and moral hazard in corporate financing," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 25(4), pages 743-770, December.
    5. Benjamin Montmartin & Marcos Herrera & Nadine Massard, 2018. "The Impact of the French Policy Mix on Business R&D: How Geography Matters," GREDEG Working Papers 2018-09, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), University of Nice Sophia Antipolis.
    6. Michel Dumont, 2015. "Working Paper 05-15 - Evaluation of federal tax incentives for private R&D in Belgium: An update," Working Papers 1505, Federal Planning Bureau, Belgium.
    7. Ana Fernandez-Zubieta & Irene Ramos-Vielba, 2018. "Research & Innovation in Spain 2016," INGENIO (CSIC-UPV) Working Paper Series 201702, INGENIO (CSIC-UPV), revised 22 Oct 2018.
    8. Michel Dumont & André Spithoven & Peter Teirlinck, 2016. "Public Support for R&D and the Educational Mix of R&D Employees," CESifo Economic Studies, CESifo, vol. 62(3), pages 426-452.

    More about this item

    Keywords

    Soft loans; R&D subsidies; impact assessment;

    JEL classification:

    • H81 - Public Economics - - Miscellaneous Issues - - - Governmental Loans; Loan Guarantees; Credits; Grants; Bailouts
    • L2 - Industrial Organization - - Firm Objectives, Organization, and Behavior
    • L52 - Industrial Organization - - Regulation and Industrial Policy - - - Industrial Policy; Sectoral Planning Methods
    • O3 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights

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