Space policy drives innovation through technological procurement: evidence from Italy
Stefano Clo and
Working Papers - Economics from Universita' degli Studi di Firenze, Dipartimento di Scienze per l'Economia e l'Impresa
To what extent public procurement for mission-oriented policies drives innovation? Space policy is a particularly interesting case study, and we investigate the impact of technological procurement of the Italian Space Agency (ASI) on suppliersâ€™ innovation output. We have built an empirical model that takes advantage of unique data on ASI orders merged with patent and company data of more than 460 firms involved in a procurement relationship with ASI over the period 2004-2018. We combine matching techniques with a diff-in-diff approach with heterogeneous timing in treatment to assess whether becoming a space agency technological supplier has an impact on the extent and quality of firmsâ€™ patenting activity. Our findings, that are novel for space policy studies, suggest a statistically significant effect of space agency procurement. The effect is stronger for high-tech suppliers. These results are robust to several alternative specifications and estimation methods and provide evidence about the importance of space policy in enhancing firmsâ€™ innovation capacity through the procurement pathway.
Keywords: Public procurement; space industry; space policy; innovation. (search for similar items in EconPapers)
JEL-codes: C25 H57 O32 O38 (search for similar items in EconPapers)
Pages: 31 pages
New Economics Papers: this item is included in nep-eur, nep-ino, nep-sbm and nep-tid
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Persistent link: https://EconPapers.repec.org/RePEc:frz:wpaper:wp2021_08.rdf
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