A territorial approach to R&D subsidies: Empirical evidence for Catalonian firms

Agustí Segarra (), Mercedes Teruel Carrizosa () and Miquel Angel Bove ()
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Agustí Segarra: Research Group of Industry and Territory, Department of Economics – CREIP, Universitat Rovira i Virgili
Miquel Angel Bove: Research Group of Industry and Territory, Department of Economics – CREIP, Universitat Rovira i Virgili

No XREAP2014-07, Working Papers from Xarxa de Referència en Economia Aplicada (XREAP)

Abstract: Using a database of 2,263 responses to R&D public calls in Catalonia, during the period 2007–2010, this paper proceeds to analyse the potential interaction of the territorial and policy dimensions with the propensity to apply for, and be awarded, a public R&D subsidy. Controlling for characteristics at the firm and project level, we estimate models using a twostep procedure. In the first step, our results suggest that large firms which export and which belong to high-tech manufactures are more likely to participate in a public R&D call. Furthermore, both urban location and past experience of such calls have a positive effect. Our territorial proxy of information spillovers shows a positive sign, but this is only significant at intra-industry level. Membership of one of the sectors prioritized by the Catalan government, perhaps surprisingly, does not have a significant impact. In the second step, our results show that cooperative projects, SMEs or old firms shows a positive effect on the probability of obtaining a public subsidy. Finally, the cluster policy does not show a clear relationship with the public R&D call, suggesting that cluster policies and R&D subsidies follow different goals. Our results are in line with previous results in the literature, but they highlight the unequal territorial distribution of the firms which apply and the fact that policymakers should interlink the decision criteria for their public call with other policies.

Keywords: Evaluation; R&D policies; territorial approach; clusters (search for similar items in EconPapers)
JEL-codes: L25 L53 O38 (search for similar items in EconPapers)
Pages: 39 pages
Date: 2014-09, Revised 2014-09
New Economics Papers: this item is included in nep-cse, nep-eur, nep-ino, nep-knm, nep-sbm, nep-tid and nep-ure
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