R&D INCENTIVES: THE EFFECTIVENESS OF A PLACE-BASED POLICY

Roberto Gabriele () and Anna Giunta

No 169, Departmental Working Papers of Economics - University 'Roma Tre' from Department of Economics - University Roma Tre

Abstract: The empirical evidence concerning the impact of R&D subsidies on both sides of the innovation process (input and output) and the overall performance of the firm is mixed. Moreover, while the role of regions in implementing innovation policies has increased since the last decade, little is known on the effectiveness of regional policy. This paper analyzes the effectiveness of a local R&D policy implemented in the Italian province of Trento, during the period 2002-07. The econometric analysis is based on counterfactual models. We evaluate the achievements of the local policy maker with respect to the following objectives: (i) prompt additional investment in innovation; (ii) enhance the overall competitiveness of the business sector in the regional area. We find that R&D incentives positively affect investments in intangible assets and human capital, while they have no effect on firms’ turnover, labor productivity and profitability.

Keywords: Regional Innovation Policy; Ex Post Evaluation; Subsidies; Research and Development; Counterfactual Models (search for similar items in EconPapers)
JEL-codes: O25 O31 O38 (search for similar items in EconPapers)
Pages: 34
Date: 2012-11
New Economics Papers: this item is included in nep-cse, nep-eff, nep-eur, nep-ino, nep-ppm, nep-sbm and nep-ure
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Citations: View citations in EconPapers (6)

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Persistent link: https://EconPapers.repec.org/RePEc:rtr:wpaper:0169

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