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Impact of P&D Incentive Program on the Performance and Technological Efforts of Brazilian Industrial Firms

Author

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  • João Alberto De Negri

    (Institute for Applied Economics Research – IPEA.)

  • Mauro Borges Lemos

    (Federal University of Minas Gerais – UFMG.)

  • Fernanda De Negri

    (Institute for Applied Economics Research - IPEA.)

Abstract

Public policies that promote R&D in firms are evaluated on a regular basis in developed countries. However, this type of study is relatively rare in developing countries.. In Brazil no impact evaluation analysis that use information at firms’ level has been published. The present study, which assesses the impact of the National Technological Development Support Program (ADTEN)1 on the technical performance and strength of Brazilian industrial firms, is unprecedented in its content and method. It shows that this R&D incentive program reaches a relatively limited number of firms, considering the magnitude of the Brazilian industrial sector. The program reaches only 0.07% of Brazilian industrial firms with over 10 employees, and the volume of resources that firms borrowed within the program’s framework was only 1.6% and 3% of their R&D expenditures in 2000 and 2003, respectively. It was found evidences that ADTEN had a positive influence on companies’ private R&D expenditures from 1996 to 2003. One can say that at least the crowding out hypothesis can be rejected. There are also strong evidences that the program has positively influenced the growth of firms, their productivity and patent applications, although results are not conclusive for these two last indicators.

Suggested Citation

  • João Alberto De Negri & Mauro Borges Lemos & Fernanda De Negri, 2006. "Impact of P&D Incentive Program on the Performance and Technological Efforts of Brazilian Industrial Firms," OVE Working Papers 1406, Inter-American Development Bank, Office of Evaluation and Oversight (OVE).
    • Handle: RePEc:idb:ovewps:1406
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    Cited by:

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    2. Caio Piza & Tulio Antonio Cravo & Linnet Taylor & Lauro Gonzalez & Isabel Musse & Isabela Furtado & Ana C. Sierra & Samer Abdelnour, 2016. "The Impact of Business Support Services for Small and Medium Enterprises on Firm Performance in Low‐ and Middle‐Income Countries: A Systematic Review," Campbell Systematic Reviews, John Wiley & Sons, vol. 12(1), pages 1-167.
    3. Giuliani, Elisa & Maffioli, Alessandro & Pacheco, Manuel & Pietrobelli, Carlo & Stucchi, Rodolfo, 2014. "Evaluating the Impact of Cluster Development Programs," Papers in Innovation Studies 2014/10, Lund University, CIRCLE - Centre for Innovation Research.
    4. Erol Taymaz & Yeşim Üçdoğruk, 2009. "Overcoming the double hurdles to investing in technology," Small Business Economics, Springer, vol. 33(1), pages 109-128, June.
    5. Dezhina, I. & Simachev, Yu., 2013. "Matching Grants for Stimulating Partnerships between Companies and Universities in Innovation Area: Initial Effects in Russia," Journal of the New Economic Association, New Economic Association, vol. 19(3), pages 99-122.
    6. Cardoza, Guillermo & Fornes, Gaston & Farber, Vanina & Gonzalez Duarte, Roberto & Ruiz Gutierrez, Jaime, 2016. "Barriers and public policies affecting the international expansion of Latin American SMEs: Evidence from Brazil, Colombia, and Peru," Journal of Business Research, Elsevier, vol. 69(6), pages 2030-2039.
    7. Arias-Vazquez, Javier & Gamberoni, Elisa & Nguyen, Cuong, 2013. "A Short-Term Effect of a Better Work Programme on Firms’ Performance: Evidence from Vietnam," MPRA Paper 67475, University Library of Munich, Germany.
    8. Tulio Cravo & Caio Piza, 2016. "The Impact of Business Support Services for Small and Medium Enterprises on Firm Performance in Low -and Middle- Income Countries: A Meta-Analysis," IDB Publications (Working Papers) 94938, Inter-American Development Bank.
    9. Mario Sanginés & Joan Oriol Prats Cabrera & Carlos Pimenta & Gustavo García Osío & Juan Pablo Martínez Guzman & Mario Marcel & Pedro Farias & Gustavo Crespi & Martin D. Chrisney & Ana Corbacho, 2013. "The Fiscal Institutions of Tomorrow," IDB Publications (Books), Inter-American Development Bank, number 82298 edited by Ana Corbacho, February.
    10. Sanginés, Mario & Prats Cabrera, Joan Oriol & Pimenta, Carlos & García Osío, Gustavo & Martínez Guzman, Juan Pablo & Marcel, Mario & Farias, Pedro & Crespi, Gustavo & Chrisney, Martin D. & Corbacho, A, 2013. "The Fiscal Institutions of Tomorrow," IDB Publications (Books), Inter-American Development Bank, number 460.
    11. Szczygielski, Krzysztof & Grabowski, Wojciech & Pamukcu, Mehmet Teoman & Tandogan, Vedat Sinan, 2017. "Does government support for private innovation matter? Firm-level evidence from two catching-up countries," Research Policy, Elsevier, vol. 46(1), pages 219-237.
    12. Amina Ika Micah, 2022. "Three essays on access to credit and financial shock in Nigeria," Economics PhD Theses 0422, Department of Economics, University of Sussex Business School.
    13. Wojciech Grabowski & Krzysztof Szczygielski & M. Teoman Pamukçu & Sinan Tandogan, 2013. "Does Government Support for Private Innovation Matter? Firm Level Evidence from Turkey and Poland," CASE Network E-briefs 3, CASE-Center for Social and Economic Research.
    14. Diego Aboal & Gustavo Rojas & Belén Servín & Paz Queraltó, 2019. "How Effective are Innovation Support Programs to Stimulate Innovation? Evidence from Paraguay," Documentos de Trabajo 17233, The Latin American and Caribbean Economic Association (LACEA).
    15. Marco Carreras, 2020. "Fostering Innovation Activities with the Support of a Development Bank: Evidence from Brazil," SPRU Working Paper Series 2020-16, SPRU - Science Policy Research Unit, University of Sussex Business School.
    16. Alessandro Maffioli & Joao A. Negri & Cesar M. Rodriguez & Gonzalo Vazquez-Bare, 2017. "Themed Issue: Cash Transfers and Microfinance," Development Policy Review, Overseas Development Institute, vol. 35(5), pages 675-702, September.

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    Keywords

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    JEL classification:

    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • O32 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Management of Technological Innovation and R&D
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy

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