Complementarity of Innovation Policies in the Brazilian Industry: An Econometric Study

Eduardo Strube and Marcelo Resende

No 2780, CESifo Working Paper Series from CESifo

Abstract: The paper aims at assessing discrete complementarities in innovation policies in the context of the Brazilian industry in 2003. The paper considers the approach advanced by Mohnen and and Röller [European Economic Review, 2005] that focuses on supermodularity and submodularity tests for obstacles to innovation (in the present application: lack of finance sources, lack of skilled personnel, lack of cooperation opportunities and lack of information on technology or markets). The application avoids micro-aggregation of the data and explicitly considers sampling weights in the econometric estimation. The analysis highlights the two phases of the innovation process in terms of the propensity and intensity of innovation. The evidence, unlike previous evidence, is not totally clear cut in terms of contrasts of the two phases. Nevertheless one can detect some substitutability and complementarity for specific pairs of obstacles in analysing the propensity to innovate, and strong evidence of complementarities in obstacles when considering the intensity of innovation. In the latter case, therefore, the evidence is suggestive and favours the adoption of more targeted incentive policies.

Keywords: supermodularity; complementarities; innovation (search for similar items in EconPapers)
JEL-codes: L50 O31 O38 (search for similar items in EconPapers)
Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Journal Article: Complementarity of innovation policies in Brazilian industry: An econometric study (2014)
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Persistent link: https://EconPapers.repec.org/RePEc:ces:ceswps:_2780

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