EconPapers    
Economics at your fingertips  
 

Assessing the Impact of Public Support on Innovative Productivity

Alessandra Catozzella and Marco Vivarelli ()

No dises1177, DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE)

Abstract: Previous policy evaluation literature mainly aimed at estimating the additional effect of public support on either firms’ innovative inputs or innovative outputs. This paper is an attempt to move one step further, combining the two (input and output) dimensions of innovation into a unique efficiency perspective. To this aim, the impact of public support on the ratio between innovative sales and innovative expenditures (innovative productivity) is estimated using a sample of firm-level data drawn from the third Italian Community Innovation Survey (CIS). A bivariate endogenous switching model has been developed in order to free the analysis of any ex ante sources of sample selection and firm heterogeneity, at the same time getting rid of the two sources of endogeneity potentially affecting the results, i.e. the possible simultaneity between subsidy allocation and the qualitative composition of the innovative output, as well as the endogeneity of public support with respect to innovative performance. Results show that innovative productivity is negatively affected by the public support ; far from ‘doing better’ as a result of government intervention, supported firms appear to exhaust their advantage through merely increasing their innovative expenditures.

Keywords: innovation subsidy; policy evaluation; product innovation; bivariate endogenous switching model (search for similar items in EconPapers)
JEL-codes: O32 O38 (search for similar items in EconPapers)
Date: 2011-11
New Economics Papers: this item is included in nep-eff, nep-ino and nep-sbm
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link)
http://www.unicatt.it/dipartimenti/DISES/allegati/dises1177.pdf First version, aaaa (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ctc:serie2:dises1177

Access Statistics for this paper

More papers in DISCE - Quaderni del Dipartimento di Scienze Economiche e Sociali from Università Cattolica del Sacro Cuore, Dipartimenti e Istituti di Scienze Economiche (DISCE) Contact information at EDIRC.
Bibliographic data for series maintained by Francesco Timpano ().

 
Page updated 2020-11-27
Handle: RePEc:ctc:serie2:dises1177