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Public support to innovation: impact on technological efforts in Argentine manufacturing firms

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  • Natalia Petelski
  • Darío Milesi
  • Vladimiro Verre

Abstract

Following the evolutionist and neo-schumpeterian approach and the literature on additionality of innovation policy, this paper evaluates the impact of public funding to innovation on the intensity of the R&D expenditures and on the intensity of the employment in innovation. The analysis is based on recent evidence of Argentine manufacturing firms surveyed by ENDEI for 2010–2012 using Propensity Score Matching (PSM) method. The results show a positive impact on the intensity of the R&D effort of the supported firms in monetary terms, allowing us to reject the full crowding-out hypothesis. However, the positive monetary impact is not accompanied by a greater proportion of employment oriented to innovation activities, neither formal nor informal; so it is not possible to conclude that the analyzed policy translates into an improvement in the innovation competencies of the firms based on this indicator.

Suggested Citation

  • Natalia Petelski & Darío Milesi & Vladimiro Verre, 2020. "Public support to innovation: impact on technological efforts in Argentine manufacturing firms," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 29(1), pages 66-88, January.
    • Handle: RePEc:taf:ecinnt:v:29:y:2020:i:1:p:66-88
    DOI: 10.1080/10438599.2019.1585672
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    Cited by:

    1. Hyensup Shim & Kiyoon Shin, 2021. "Empirical Analysis of Evidence-Based Policymaking in R&D Programmes," Sustainability, MDPI, vol. 14(1), pages 1-15, December.
    2. Helena Lenihan & Kevin Mulligan & Justin Doran & Christian Rammer & Olubunmi Ipinnaiye, 2024. "R&D grants and R&D tax credits to foreign-owned subsidiaries: Does supporting multinational enterprises’ R&D pay off in terms of firm performance improvements for the host economy?," The Journal of Technology Transfer, Springer, vol. 49(2), pages 740-781, April.
    3. Shiyuan Liu & Jiang Du & Weike Zhang & Xiaoli Tian, 2021. "Opening the box of subsidies: which is more effective for innovation?," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 11(3), pages 421-449, September.
    4. Adriana Zabłocka-Abi Yaghi & Tomasz Tomaszewski, 2024. "Measuring the Impact of R&D&I Subsidies on Innovative Inputs and Outputs in Polish Manufacturing Firms," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 3792-3823, March.
    5. Marco Túlio Dinali Viglioni & Mozar José Brito & Cristina Lelis Leal Calegario, 2020. "Innovation and R&D in Latin America and the Caribbean countries: a systematic literature review," Scientometrics, Springer;Akadémiai Kiadó, vol. 125(3), pages 2131-2167, December.

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