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Innovative public procurement and R&D Subsidies: hidden treatment and new empirical evidence on the technology policy mix in a quasi-experimental setting

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This paper provides new empirical evidence about the impact of technological policies upon firms’ innovative behavior. We take into consideration the role of R&D subsidies and innovative public procurement. While the former policy tool has been both extensively discussed in the literature and empirically investigated, the latter is a growing trend, which still lacks robust empirical evidence. In this paper, we replicate existing results on R&D subsidies, we surmise fresh empirical evidence on the outcome of innovative public procurement, and we address the issue of a possible interaction among the two tools. When controlling for this interaction of public procurement, R&D subsidies cease to be as effective as reported in previous studies. Innovative public procurement seems to be more effective than R&D subsidies. Evidence suggests that the two policies provide the highest impact when they interact and that they have to be simultaneously considered. Failure in doing so might lead to biased results.

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  • Guerzoni, Marco & Raiteri, Emilio, 2012. "Innovative public procurement and R&D Subsidies: hidden treatment and new empirical evidence on the technology policy mix in a quasi-experimental setting," 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 201218, University of Turin.
    • Handle: RePEc:uto:labeco:201218
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    Cited by:

    1. Francesco Forte & Michela Mantovani, 2014. "Cognitive dissonance, efficient and inefficient rent seeking and public aid to the movies," Chapters, in: Francesco Forte & Ram Mudambi & Pietro Maria Navarra (ed.), A Handbook of Alternative Theories of Public Economics, chapter 18, pages 413-440, Edward Elgar Publishing.
    2. Ben R. Martin, 2015. "R&D Policy Instruments: A Critical Review of What We Do & Don't Know," Working Papers wp476, Centre for Business Research, University of Cambridge.
    3. Robert Davtyan & Wojciech Piotrowicz, 2021. "Cleantech: State of the Art and Implications for Public Procurement," Managing Global Transitions, University of Primorska, Faculty of Management Koper, vol. 19(3 (Fall)), pages 185-207.
    4. Arkadiusz Kijek, 2019. "The Effect of Public Procurement and its Spillovers on Innovativeness of Enterprises in European Countries," European Research Studies Journal, European Research Studies Journal, vol. 0(1), pages 103-111.
    5. Wanshu Wu & Kai Zhao & Lei Li, 2021. "Can government subsidy strategies and strategy combinations effectively stimulate enterprise innovation? Theory and evidence," Economia Politica: Journal of Analytical and Institutional Economics, Springer;Fondazione Edison, vol. 38(2), pages 423-446, July.

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