Beyond surveys: The research frontier moves to the use of administrative data to evaluate R&D grants

Michele Morris and Oliver J. Herrmann

Research Evaluation, 2013, vol. 22, issue 5, 298-306

Abstract: Evaluation has relied on survey data sources. Different fields of social sciences (political science, sociology, and economics) were revolutionized using modern survey methods and techniques for analysing these data. However, the research frontier moves to the use of administrative data. Administrative data are highly preferable to survey data because (1) full population files are generally available and offer much larger sample sizes, (2) administrative data have a longitudinal structure that enables evaluators to follow individuals over time and address many critical policy questions, (3) administrative data do not suffer from high rates of non-response, attrition, and under-reporting. This article presents results from an evaluation of publicly funded R&D assistance provided to New Zealand firms. The grants are intended to lead to additional R&D undertaken by the firm, which in turn is expected to increase the economic performance of a firm. We use the Statistics New Zealand prototype Longitudinal Business Database (LBD), which contains high quality and comprehensive administrative firm-level data. The problem of evaluation is that while the programmes' impact can truly be assessed only by comparing actual and counterfactual outcomes, the counterfactual is not observed. So the challenge of an evaluation is to create a convincing and reasonable comparison group for assisted firms in light of this 'missing data'. Our methodology involves matching firms that received assistance to comparable unassisted firms based on firm characteristics. We then compare changes in performances of the assisted group with the group of matched unassisted firms. Copyright The Author 2013. Published by Oxford University Press. All rights reserved. For Permissions, please email: journals.permissions@oup.com, Oxford University Press.

Date: 2013
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Citations: View citations in EconPapers (4)

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