Public support prevalence and innovation behavior. Uruguay 2007-2015

Liliana Gelabert, Martín Pereyra and Flavia Roldán
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Liliana Gelabert: IE Univeristy
Martín Pereyra: Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales. Departamento de Economía / CINVE
Flavia Roldán: Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales. Departmento de Economía
Authors registered in the RePEc Author Service: Flavia Roldán

No 127, Documentos de Investigación from Universidad ORT Uruguay. Facultad de Administración y Ciencias Sociales

Abstract: Using Uruguayan data from 2007 to 2015, we examine the role of the distribution of public support within sectors on the firm innovation efforts. Our empirical analysis shows that the manner in which public support is allocated within a sector affects a firm's incentives to undertake innovation expenditures. When public support for innovation activities is more equitably distributed within a sector, firms that persistently undertake innovation activities increase their innovation expenditures, whether or not they are direct recipients of support. These results highlight a new indirect mechanism by which innovation policy affects a firm's incentives to undertake private innovation.

Keywords: innovation policy; innovation expenditure; Latin America. (search for similar items in EconPapers)
JEL-codes: L10 L12 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2021-08
New Economics Papers: this item is included in nep-ino and nep-sbm
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