The University of Southampton
University of Southampton Institutional Repository

A micro-econometric analysis of public support to private R&D in Argentina

Record type: Article

This paper investigates the relationship between government interventions to promote investments in innovation and firm?financed R&D. Merging a unique panel data set on Argentinean firms in the 1990s with a data base on different types of public support received through the FONTAR (Fondo Tecnólogico Argentino) program, we estimate a fixed effects model and find evidence of a significant positive impact of FONTAR on private R&D. A 1 per cent increase in the amount received through FONTAR induces an average increase of 547.6 real pesos in annual R&D expenditures. The result is robust to the use of an instrumental variable estimator that controls for the potential bias induced by changes in the structure of the program. An analysis by type of financial support reveals that the impact is mainly due to targeted and fiscal credit with no evidence that funding received through matching grants has an additionality effect on private investments. This result is in line with the predictions of a simple theoretical model that investigates the impact of different policy interventions to promote investments in R&D. When firms’ preferences are not directly observable, the provision of direct subsidies is more likely to incur the risk of adverse selection attracting firms that would have invested in innovation even in the absence of public support or dismiss some of the non-financed projects, thus leaving unchanged or decreasing the overall level of expenditures in R&D.

Full text not available from this repository.

Citation

Binelli, Chiara and Maffioli, Alessandro (2007) A micro-econometric analysis of public support to private R&D in Argentina [in special issue: The Evaluation Challenge: Lessons from Regional and Industrial Development Policies] International Review of Applied Economics, 21, (3), pp. 339-359. (doi:10.1080/02692170701390320).

More information

e-pub ahead of print date: 22 June 2007
Published date: July 2007
Keywords: innovation and r&d, policy evaluation, panel data
Organisations: Economics

Identifiers

Local EPrints ID: 339285
URI: http://eprints.soton.ac.uk/id/eprint/339285
ISSN: 0269-2171
PURE UUID: e93f6d90-ee5d-4c0c-8c1d-bd733aeebf98

Catalogue record

Date deposited: 29 May 2012 13:13
Last modified: 18 Jul 2017 05:53

Export record

Altmetrics

Contributors

Author: Chiara Binelli
Author: Alessandro Maffioli

University divisions


Download statistics

Downloads from ePrints over the past year. Other digital versions may also be available to download e.g. from the publisher's website.

View more statistics

Atom RSS 1.0 RSS 2.0

Contact ePrints Soton: eprints@soton.ac.uk

ePrints Soton supports OAI 2.0 with a base URL of http://eprints.soton.ac.uk/cgi/oai2

This repository has been built using EPrints software, developed at the University of Southampton, but available to everyone to use.

We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive cookies on the University of Southampton website.

×