Assessing the effect of public funding on private innovation investment in Uruguay

Felipe Berrutti () and Carlos Bianchi
Additional contact information
Felipe Berrutti: Universidad de la República (Uruguay). Facultad de Ciencias Económicas y de Administración. Instituto de Economí­a

No 17-04, Documentos de Trabajo (working papers) from Instituto de Economía - IECON

Abstract: Despite the recent research efforts and methodological improvements, empirical evidence on the additionality effects of public innovation programs shows heterogeneous results by firm, sector, country and type of innovation. This paper assesses input additionality of public funding on private innovative investment of Uruguayan firms by applying a longitudinal analysis from 2001 to 2012. During this period, there was a dramatic increase of public innovation funds. However, the number of innovative firms remains stable and the amount of public funding for innovation at firm level is still very low. In this context, previous innovation experience appears as the most significant determinant of access to public innovation support. Moreover, we find evidence of a moderate substitution effect between public and private funds. We analyzed heterogeneous effects according to type of innovation, finding significant effects only for innovation based on acquisition of artifacts (embodied). We conclude on the main challenges of the current policy mix in Uruguay, stressing the relevance of further research lines on behavioral additionality to contribute to improve policy results.

Keywords: public funding; input additionality, innovation survey, Uruguay (search for similar items in EconPapers)
JEL-codes: H81 L2 O3 O38 (search for similar items in EconPapers)
Pages: 33 pages
Date: 2017-04
New Economics Papers: this item is included in nep-dcm, nep-ino, nep-sbm and nep-tid
References: Add references at CitEc
Citations:

Downloads: (external link)
https://hdl.handle.net/20.500.12008/18978

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ulr:wpaper:dt-04-17

Access Statistics for this paper

More papers in Documentos de Trabajo (working papers) from Instituto de Economía - IECON Contact information at EDIRC.
Bibliographic data for series maintained by Lorenza Pérez ().