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Public Support of Innovative Activity in Small and Large Firms in Mexico

Author

Listed:
  • Guerrero, Maribel

    (University of North Carolina at Greensboro, Department of Economics)

  • Link, Albert

    (University of North Carolina at Greensboro, Department of Economics)

Abstract

The National Science and Technology Council (CONACYT) was established in 1970 by the Mexican government. CONACYT was formed to promote the scientific development and technological modernization of Mexico through developing high-level human resources, encouraging research projects, and disseminating scientific/technological information. In 2009, CONACYT launched the Innovation Stimulus Program (PEI) to foster enterprises’ innovation activities and to encourage collaboration on innovation activities among firms and between firms and public research institutes and higher education institutions. Based on an analysis of project data from the PEI program over the years 2009 through 2014 we found that large firms are more innovative than small firms. And, firms that are more innovative are those that had prior funded research, collaborated with universities in the funded research project, added new employees during the research project, and faced larger markets for their innovations.

Suggested Citation

  • Guerrero, Maribel & Link, Albert, 2021. "Public Support of Innovative Activity in Small and Large Firms in Mexico," UNCG Economics Working Papers 21-4, University of North Carolina at Greensboro, Department of Economics.
    • Handle: RePEc:ris:uncgec:2021_004
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    References listed on IDEAS

    as
    1. Albert N. Link & John T. Scott, 2013. "Governments as entrepreneur: Evaluating the commercialization success of SBIR projects," Chapters, in: Public Support of Innovation in Entrepreneurial Firms, chapter 2, pages 25-38, Edward Elgar Publishing.
    2. Albert N Link, 2021. "Knowledge Transfers from Federally Funded Research and Development Centers," Science and Public Policy, Oxford University Press, vol. 48(4), pages 576-581.
    3. Bronwyn Hall & Alessandro Maffioli, 2008. "Evaluating the impact of technology development funds in emerging economies: evidence from Latin America," The European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 172-198.
    4. Dutrénit, gabriela & Capdevielle, Mario & Corona, Juan Manuel & Puchet, Martin & Santiago, Fernando & Vera-Cruz, Alexandre, 2010. "El sistema nacional de innovación mexicano: estructuras, políticas, desempeño y desafíos [The Mexican national innovation system: structures, policies, performance and challenges]," MPRA Paper 31982, University Library of Munich, Germany.
    5. Albert N. Link & John T. Scott, 2013. "Private Investor Participation and Commercialization Rates for Government-sponsored Research and Development: Would a Prediction Market Improve the Performance of the SBIR Programme?," Chapters, in: Public Support of Innovation in Entrepreneurial Firms, chapter 11, pages 157-174, Edward Elgar Publishing.
    6. Rajeev K. Goel & Michael A. Nelson, 2021. "How do firms use innovations to hedge against economic and political uncertainty? Evidence from a large sample of nations," The Journal of Technology Transfer, Springer, vol. 46(2), pages 407-430, April.
    7. Bronwyn Hall & Alessandro Maffioli, 2008. "Evaluating the impact of technology development funds in emerging economies: evidence from Latin America," The European Journal of Development Research, Taylor and Francis Journals, vol. 20(2), pages 172-198.
    8. David B. Audretsch & Albert N. Link & John T. Scott, 2013. "Public/private technology partnerships: evaluating SBIR-supported research," Chapters, in: Public Support of Innovation in Entrepreneurial Firms, chapter 5, pages 91-104, Edward Elgar Publishing.
    9. G. M.P. Swann, 2009. "The Economics of Innovation," Books, Edward Elgar Publishing, number 13211.
    10. Gicheva, Dora & Link, Albert N., 2016. "On the economic performance of nascent entrepreneurs," European Economic Review, Elsevier, vol. 86(C), pages 109-117.
    11. Albert N. Link & Cody A. Morris & Martijn Hasselt, 2021. "The impact of the third sector of R&D on the innovative performance of entrepreneurial firms," Small Business Economics, Springer, vol. 57(3), pages 1413-1418, October.
    12. Crespi, Gustavo & Zuniga, Pluvia, 2012. "Innovation and Productivity: Evidence from Six Latin American Countries," World Development, Elsevier, vol. 40(2), pages 273-290.
    13. Frank, Alejandro Germán & Cortimiglia, Marcelo Nogueira & Ribeiro, José Luis Duarte & Oliveira, Lindomar Subtil de, 2016. "The effect of innovation activities on innovation outputs in the Brazilian industry: Market-orientation vs. technology-acquisition strategies," Research Policy, Elsevier, vol. 45(3), pages 577-592.
    14. Steven Bednar & Dora Gicheva & Albert N. Link, 2021. "Innovative activity and gender dynamics," Small Business Economics, Springer, vol. 56(4), pages 1591-1599, April.
    15. Albert N. Link & Christopher J. Ruhm, 2013. "Bringing science to market:commercializing from NIH SBIR awards," Chapters, in: Public Support of Innovation in Entrepreneurial Firms, chapter 1, pages 3-24, Edward Elgar Publishing.
    16. Leyden, Dennis Patrick & Link, Albert N., 2015. "Public Sector Entrepreneurship: U.S. Technology and Innovation Policy," OUP Catalogue, Oxford University Press, number 9780199313853.
    17. Albert N. Link & Cody A. Morris & Martijn Hasselt, 0. "The impact of the third sector of R&D on the innovative performance of entrepreneurial firms," Small Business Economics, Springer, vol. 0, pages 1-6.
    18. Protogerou, Aimilia & Caloghirou, Yannis & Vonortas, Nicholas S., 2017. "Determinants of young firms’ innovative performance: Empirical evidence from Europe," Research Policy, Elsevier, vol. 46(7), pages 1312-1326.
    19. Claudia Fuentes & Fernando Santiago & Serdal Temel, 2020. "Perception of innovation barriers by successful and unsuccessful innovators in emerging economies," The Journal of Technology Transfer, Springer, vol. 45(4), pages 1283-1307, August.
    20. Chudnovsky, Daniel & Lopez, Andres & Pupato, German, 2006. "Innovation and productivity in developing countries: A study of Argentine manufacturing firms' behavior (1992-2001)," Research Policy, Elsevier, vol. 35(2), pages 266-288, March.
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    Cited by:

    1. Guerrero, Maribel & Siegel, Donald S., 2024. "Schumpeter meets Teece: Proposed metrics for assessing entrepreneurial innovation and dynamic capabilities in entrepreneurial ecosystems in an emerging economy," Research Policy, Elsevier, vol. 53(5).

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    More about this item

    Keywords

    Public program evaluation; innovation; R&D; Mexico;
    All these keywords.

    JEL classification:

    • H32 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - Firm
    • O25 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Industrial Policy
    • 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
    • O54 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Latin America; Caribbean

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