How does public support for innovation affect cooperation between firms? Evidence from Uruguay

Flavia Roldán, Santiago Acerenza, Martín Pereyra and Liliana Gelabert

No 4594, Asociación Argentina de Economía Política: Working Papers from Asociación Argentina de Economía Política

Abstract: In this paper we estimate the behavioural additionally of public support for innovation activities, on the decision to cooperate. Using Uruguayan data from 2007 to 2015, and controlling for endogeneity, we find that public support for innovation increases the likelihood of different types of cooperation agreements. The empirical evidence suggests that public support leads to organizational changes within supported firms that increase their propensity to cooperate with other firms. The implications of these results are relevant for policy design as they contribute to the understanding of the unintended positive (or negative) impacts of public support for innovation on the behaviour of supported firms. We find that the Average Treatment Effect of public support on cooperation is 0.027. Which means that holding everything else constant, public support increases the probability of cooperating by 0.027.

JEL-codes: H25 H81 L2 L60 M21 O3 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2022-11
New Economics Papers: this item is included in nep-sbm
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Persistent link: https://EconPapers.repec.org/RePEc:aep:anales:4594

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