Innovation capabilities in the private sector: evaluating subsidies for hiring S&T workers in Spain

Catalina Martínez, Laura Cruz-Castro and Luis Sanz-Menéndez

Research Evaluation, 2016, vol. 25, issue 2, 196-208

Abstract: This article evaluates the effectiveness of a public programme intended to improve innovation capabilities in the private sector by subsidizing the hiring of research and development (R&D) personnel. Using information from the programme management database, we study factors associated with the duration of contracts and their transformation into open-ended contracts, a basic aim of the programme. We explore the characteristics of subsidies, individuals, entities, and projects related to the eventual stabilization of the new R&D employees, when the subsidies had ended. The programme was found to strengthen R&D capacity in recipient firms—above all in technology centres—yet, only about half of the subsidized short-term contracts had been converted into permanent contracts by the end of their second year.

Date: 2016
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Working Paper: Innovation capabilities in the private sector: evaluating subsidies for hiring s&t workers in Spain (2015)
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Persistent link: https://EconPapers.repec.org/RePEc:oup:rseval:v:25:y:2016:i:2:p:196-208.

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