Matthew effects and R&D subsidies: knowledge cumulability in high-tech and low-tech industries
The paper explores the causes and effects of persistence in the discretionary allocation of public subsidies to R&D activities performed by private firms in high-tech and low-tech industries. It applies the distinction between virtuous Matthew-effects and vicious Matthew-effects. The former qualifies the persistence in the discretionary allocation of public subsidies in terms of sheer reputation based upon previous awards. The latter is identified by the role of the accumulation of competence stemming from past grants in current R&D activities. Virtuous Matthew effects are found in high-tech industries where knowledge cumulability is higher. In traditional industries, vicious Matthew effects prevail for the lower levels of knowledge cumulability. Here reputation-Matthew-effects can lead to substitution of private funds with public ones. The empirical analysis is based on Transition Probability Matrices, probit regressions and Propensity Score Matching on around 700 Italian firms in the years 1998-2003.
|Date of creation:||Oct 2011|
|Contact details of provider:|| Postal: Via Silvio d'Amico 77, - 00145 Rome Italy|
Phone: +39 06 57114612
Fax: +39 06 57114771
Web page: http://host.uniroma3.it/dipartimenti/economia/it/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Francesco Crespi & Mario Pianta, 2008. "Diversity in innovation and productivity in Europe," Journal of Evolutionary Economics, Springer, vol. 18(3), pages 529-545, August.
- Neil B. Niman, 1995. "Picking Winners And Losers In The Global Technology Race," Contemporary Economic Policy, Western Economic Association International, vol. 13(3), pages 77-87, 07.
- Antonelli,Cristiano & Crespi, Francesco & Scellato, Giuseppe, 2012.
"Inside innovation persistence: New evidence from Italian micro-data,"
Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio
201213, University of Turin.
- Antonelli, Cristiano & Crespi, Francesco & Scellato, Giuseppe, 2012. "Inside innovation persistence: New evidence from Italian micro-data," Structural Change and Economic Dynamics, Elsevier, vol. 23(4), pages 341-353.
- Bettina Peters, 2009.
"Persistence of innovation: stylised facts and panel data evidence,"
The Journal of Technology Transfer,
Springer, vol. 34(2), pages 226-243, April.
- Bettina Peters, 2005. "Persistence of Innovation: Stylised Facts and Panel Data Evidence," Development and Comp Systems 0511021, EconWPA.
- Bettina Peters, 2006. "Persistence of Innovation Stylised Facts and Panel Data Evidence," DRUID Working Papers 06-30, DRUID, Copenhagen Business School, Department of Industrial Economics and Strategy/Aalborg University, Department of Business Studies.
- Peters, Bettina, 2005. "Persistence of Innovation: Stylised Facts and Panel Data Evidence," ZEW Discussion Papers 05-81, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Kauko, K., 1996. "Effectiveness of R & D subsidies -- a sceptical note on the empirical literature," Research Policy, Elsevier, vol. 25(3), pages 321-323, May.
- 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.
- Blanes, J. Vicente & Busom, Isabel, 2004.
"Who participates in R&D subsidy programs?: The case of Spanish manufacturing firms,"
Elsevier, vol. 33(10), pages 1459-1476, December.
- J. Vicente Blanes & Isabel Busom, 2004. "WHO PARTICIPATES IN R&D SUBSIDY PROGRAMS?. The case of Spanish Manufacturing Firms," Working Papers wpdea0407, Department of Applied Economics at Universitat Autonoma of Barcelona.
- Antonelli, Cristiano & Crespi, Francesco & Scellato, Giuseppe, 2013.
"Path Dependent Patterns of Persistence in Productivity Growth,"
Department of Economics and Statistics Cognetti de Martiis. Working Papers
201323, University of Turin.
- Antonelli Cristiano & Crespi, Francesco & Scellato, Giuseppe, 2013. "Path Dependent Patterns of Persistence in Productivity Growth," Department of Economics and Statistics Cognetti de Martiis LEI & BRICK - Laboratory of Economics of Innovation "Franco Momigliano", Bureau of Research in Innovation, Complexity and Knowledge, Collegio 201310, University of Turin.
- Raquel Ortega-Argilés & Mariacristina Piva & Lesley Potters & Marco Vivarelli, 2009.
"Is Corporate R&D Investment in High-Tech Sectors More Effective?,"
DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali
dises0955, Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE).
- Raquel Ortega-Argilés & Mariacristina Piva & Lesley Potters & Marco Vivarelli, 2010. "Is Corporate R&D Investment In High-Tech Sectors More Effective?," Contemporary Economic Policy, Western Economic Association International, vol. 28(3), pages 353-365, 07.
- Paul Romer, 1989.
"Endogenous Technological Change,"
NBER Working Papers
3210, National Bureau of Economic Research, Inc.
- Klette, T.J. & Moen, J. & Griliches, Z., 1999. "Do Subsidies to Commercial R&D Reduce Market Failures? Microeconometric Evaluation Studies," Papers 16/99, Norwegian School of Economics and Business Administration-.
- Edwin Leuven & Barbara Sianesi, 2003. "PSMATCH2: Stata module to perform full Mahalanobis and propensity score matching, common support graphing, and covariate imbalance testing," Statistical Software Components S432001, Boston College Department of Economics, revised 19 Jan 2015.
- Almus, Matthias & Czarnitzki, Dirk, 2001.
"The effects of public R&D subsidies on firms' innovation activities: the case of Eastern Germany,"
ZEW Discussion Papers
01-10, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Almus, Matthias & Czarnitzki, Dirk, 2003. "The Effects of Public R&D Subsidies on Firms' Innovation Activities: The Case of Eastern Germany," Journal of Business & Economic Statistics, American Statistical Association, vol. 21(2), pages 226-236, April.
- DUGUET Emmanuel, 2004. "Are R&D subsidies a substitute or a complement to privately funded R&D? Evidence from France using propensity score methods for non- experimental data," Public Economics 0411007, EconWPA.
- Arvanitis, Spyros & Hollenstein, Heinz & Lenz, Stephan, 2002. "The Effectiveness of Government Promotion of Advanced Manufacturing Technologies (AMT): An Economic Analysis Based on Swiss Micro Data," Small Business Economics, Springer, vol. 19(4), pages 321-340, December.
- Roper, Stephen & Hewitt-Dundas, Nola, 2008. "Innovation persistence: Survey and case-study evidence," Research Policy, Elsevier, vol. 37(1), pages 149-162, February.
- James J. Heckman & Hidehiko Ichimura & Petra Todd, 1998. "Matching As An Econometric Evaluation Estimator," Review of Economic Studies, Oxford University Press, vol. 65(2), pages 261-294.
- Conte, Andrea & Schweizer, Philip & Dierx, Adriaan & Ilzkovitz, Fabienne, 2009. "An analysis of the efficiency of public spending and national policies in the area of R&D," MPRA Paper 23549, University Library of Munich, Germany.
When requesting a correction, please mention this item's handle: RePEc:rtr:wpaper:0140. 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: (Telephone for information)
If references are entirely missing, you can add them using this form.