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Innovation capabilities in the private sector: evaluating subsidies for hiring s&t workers in Spain

Author

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  • Catalina Martínez
  • Laura Cruz-Castro
  • Luis Sanz-Menéndez

Abstract

This paper evaluates the effectiveness of a public programme intended to improve innovation capabilities in the private sector by subsidizing the hiring of R&D personnel. Using information from the programme management database, we study factors associated with the duration of contracts and their transformation into open-ended contracts, a basic aim of the programme. We explore the characteristics of subsidies, individuals, entities and projects related to the eventual stabilization of the new R&D employees, when the subsidies had ended. The programme was found to strengthen R&D capacity in recipient firms - above all in technology centres - yet only about half of the subsidized short term contracts had been converted into permanent contracts by the end of their second year.

Suggested Citation

  • Catalina Martínez & Laura Cruz-Castro & Luis Sanz-Menéndez, 2015. "Innovation capabilities in the private sector: evaluating subsidies for hiring s&t workers in Spain," Working Papers 1510, Instituto de Políticas y Bienes Públicos (IPP), CSIC.
    • Handle: RePEc:ipp:wpaper:1510
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    References listed on IDEAS

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    Cited by:

    1. Martínez, Catalina & Parlane, Sarah, 2023. "Academic scientists in corporate R&D: A theoretical model," Research Policy, Elsevier, vol. 52(5).

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    More about this item

    Keywords

    Programme evaluation; company R&D and innovation; S&T employment; innovation policy; Spain;
    All these keywords.

    JEL classification:

    • O31 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Innovation and Invention: Processes and Incentives
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • H43 - Public Economics - - Publicly Provided Goods - - - Project Evaluation; Social Discount Rate
    • H83 - Public Economics - - Miscellaneous Issues - - - Public Administration
    • Z18 - Other Special Topics - - Cultural Economics - - - Public Policy

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