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Determinants of grant decisions in R&D subsidy programmes: Evidence from firms and S&T organisations in Portugal

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  • Ana M. Silva
  • Sandra T. Silva
  • Anabela Carneiro

Abstract

While public intervention in Research and Development (R&D) is generally supported by economic theory and R&D subsidies are being implemented in most OECD countries, evidence on their effectiveness fails to reveal conclusive results. Exploring data from approved and rejected applicants to two R&D funding instruments in Portugal, we provide further evidence on R&D subsidy programmes directed to firms and S&T organisations, by identifying the determinants of grant decisions by the public agency. The results show that subsidies to firms are mainly aimed at large R&D projects by manufacturing firms, in both high- and low-technology sectors. Subsidies to S&T organisations show a higher degree of selectivity, targeting mainly universities and premium public research centres, and favouring R&D projects in exact sciences and engineering and cooperation projects. The subsidy allocation process in Portugal presents distinctive features in line with its status of an innovation follower country.

Suggested Citation

  • Ana M. Silva & Sandra T. Silva & Anabela Carneiro, 2017. "Determinants of grant decisions in R&D subsidy programmes: Evidence from firms and S&T organisations in Portugal," Science and Public Policy, Oxford University Press, vol. 44(5), pages 683-697.
    • Handle: RePEc:oup:scippl:v:44:y:2017:i:5:p:683-697.
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    References listed on IDEAS

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    Cited by:

    1. Inês Teixeira & Aurora Teixeira & Luís Santos, 2023. "R&D subsidies and Portuguese firms’ performance: A longitudinal firm-level study," GEE Papers 0173, Gabinete de Estratégia e Estudos, Ministério da Economia, revised Jul 2023.
    2. Anders Gustafsson & Patrik Gustavsson Tingvall & Daniel Halvarsson, 2020. "Subsidy Entrepreneurs: an Inquiry into Firms Seeking Public Grants," Journal of Industry, Competition and Trade, Springer, vol. 20(3), pages 439-478, September.
    3. Jugend, Daniel & Fiorini, Paula De Camargo & Armellini, Fabiano & Ferrari, Aline Gabriela, 2020. "Public support for innovation: A systematic review of the literature and implications for open innovation," Technological Forecasting and Social Change, Elsevier, vol. 156(C).
    4. Evangelos Makryvelios & George Mavrotas, 2021. "Analysis of the Research & Development Funding in Greece under EU Programmes," Journal of Public Administration and Governance, Macrothink Institute, vol. 11(1), pages 223250-2232, December.
    5. Maoyan She & Die Hu & Yuandi Wang & Li Li, 2023. "How do top management team characteristics affect government R&D subsidy grants? Evidence from an information economics perspective," Asian Business & Management, Palgrave Macmillan, vol. 22(1), pages 330-353, February.
    6. Martin Thomas Falk & Roger Svensson, 0. "Evaluation criteria versus firm characteristics as determinants of public R&D funding," Science and Public Policy, Oxford University Press, vol. 47(4), pages 525-535.
    7. Falk, Martin & Svensson, Roger, 2018. "Allocation of R&D Grants in the Business Sector," Working Paper Series 1231, Research Institute of Industrial Economics.

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