Public support for firms in lagging regionsÃ¢Â€Â”evaluation of innovation subsidy in Slovakia
Mária Širaňová and
Science and Public Policy, 2019, vol. 46, issue 2, 173-183
This article evaluates effectiveness of EU regional policy-promoting innovation and competitiveness aimed at direct support of private companies in less developed EU regions in Slovakia. By using unique set of firm microdata, we test the effectiveness of this measure with panel data fixed estimator within the framework of CobbÃ¢Â€Â“Douglas production function. We found positive and significant impact on labour productivity that disappears shortly after 1 year following subsidy allocation. By specifying the optimal amount of aid, we find that majority of supported firms could benefit from bigger subsidy size, thus justifying a call for Ã¢Â€Â˜more music for more moneyÃ¢Â€Â™ policy.
Keywords: regional policy; impact study; innovation support; fixed effects panel model (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (2) Track citations by RSS feed
Downloads: (external link)
Access to full text is restricted to subscribers.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:oup:scippl:v:46:y:2019:i:2:p:173-183.
Access Statistics for this article
Science and Public Policy is currently edited by Sybille Hinze, Jeong-Dong Lee and Nicholas Vonortas
More articles in Science and Public Policy from Oxford University Press
Bibliographic data for series maintained by Oxford University Press ().