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The Asymmetric Use of Incentives in Portugal: The Example of PRIME

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Abstract

PRIME has been between 2000 and 2006 a commonly used public policy instrument. Although nationally promoted, it served the diffusion of European funds across the entrepreneurial tissue. In this paper we intend to follow the application of this instrument for a monitoring and strategic evaluation of policy support system to companies’; in particularly, the analyses at regional scale can identify some eventual hindrances to success. Methodologically, we have observed the financing execution of 14910 projects, collected from the official information portal of PRIME in Portugal. Due to limitations related to the information sources of the portal our study deals with a reduced number of variables: project location, year, industrial activity, financial program, NUT, district, investment and incentive. Nevertheless, the application of HOMALS, Cluster and Correspondence Analyses was possible, allowing conclusions about the level of effectiveness of PRIME across, both, location and sectors levels

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  • Galindo, Purificacíon & Noronha, Teresa & Neto, Paulo, 2009. "The Asymmetric Use of Incentives in Portugal: The Example of PRIME," Spatial and Organizational Dynamics Discussion Papers 2009-1, CIEO-Research Centre for Spatial and Organizational Dynamics, University of Algarve.
  • Handle: RePEc:ris:cieodp:2009_001
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    Keywords

    Public Policy; Portugal PRIME Program; Cluster Analysis; Firm Support Incentive; Multivariate Analysis;

    JEL classification:

    • O18 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Urban, Rural, Regional, and Transportation Analysis; Housing; Infrastructure
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O57 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Comparative Studies of Countries
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy

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