scholarly journals Instrument policy mix and firm size: is there complementarity between R&D subsidies and R&D tax credits?

2021 ◽  
Author(s):  
Tea Petrin ◽  
Dragana Radicic
Keyword(s):  
Public Support ◽  
Policy Instruments ◽  
State Dependence ◽  
Policy Implications ◽  
Tax Credits ◽  
Large Firms ◽  
Policy Mix ◽  
Process Innovations ◽  
Long Run ◽  
Product And Process

AbstractNowadays, a rising number of evaluations investigates a multifaceted concept of the policy mix. Our study specifically focuses on the mix of two most frequently used supply-side instruments–R&D subsidies and R&D tax credits. Drawing on the longitudinal sample of Spanish manufacturing firms, we investigate whether there is a complementary interaction between these policy instruments with respect to product and process innovations. Moreover, by employing a dynamic random-effects probit estimator, we account for the persistence of innovation and endogeneity of public support. The results, that are separately estimated for SMEs and large firms, uniformly show evidence of no interplay between two policy instruments either in SMEs or large firms. However, among factors that influence the propensity to product and process innovations, by far, the largest effect is generated by true state dependence. These findings provide some policy implications for fostering product and process innovations in the long run.

scholarly journals Collaboration with External Organizations and Technological Innovations: Evidence from Spanish Manufacturing Firms

2019 ◽  
Vol 11 (9) ◽  
pp. 2479 ◽  
Author(s):  
Dragana Radicic ◽  
Jonathan Pinto
Keyword(s):  
Technological Innovation ◽  
State Dependence ◽  
Manufacturing Firms ◽  
Policy Implications ◽  
Technological Innovations ◽  
Process Innovations ◽  
Sectoral Analysis ◽  
Product And Process ◽  
High Degree ◽  
Technological Intensity

Based on the two knowledge dimensions of availability and accessibility, this study investigates the influence of cooperation with external organizations on technological, product, and process innovations. Using longitudinal data from Spanish manufacturing firms, we estimate dynamic random-effects probit models and thus take into account that technological innovations exhibit persistent behavior. We find that cooperation with suppliers and universities is positively associated with both product and process innovations. However, sectoral analysis according to technological intensity reveals that cooperation with suppliers increases the propensity to technological innovation in industries with a higher degree of technological intensity, while cooperation with universities increases the likelihood of innovation in industries with a lower degree of technological intensity. Moreover, empirical results indicate a high degree of true or genuine state dependence in both types of innovations. Based on these findings, we discuss the theoretical, managerial, and policy implications of the study.

A Perceptual Measure of Innovation Performance: Firm-Level Evidence from Turkey

2017 ◽  
Vol 14 (06) ◽  
pp. 1750038 ◽  
Author(s):  
Derya Findik ◽  
Berna Beyhan
Keyword(s):  
Factor Analysis ◽  
Small Firms ◽  
Innovation Performance ◽  
Large Firms ◽  
Firm Level ◽  
Process Innovations ◽  
Significant Difference ◽  
Process Oriented ◽  
Product And Process ◽  
The Impact

This paper aims to introduce a qualitative indicator to measure innovation performance of Turkish firms by using firm-level data collected by Turkish Statistical Institute (TURKSTAT) in 2008 and 2009. We propose a new indicator to measure the innovation performance which is simply based on the perception of firms regarding to the impacts of innovation. In order to create performance indicators, we conduct a factor analysis to group the firms’ perceptions on the impacts of innovation. Factor analysis gives us product and process-oriented impacts of innovation. There are significant differences among product innovators, process innovators and firms engaged in both product and process innovations with respect to their perceptions on product and process-oriented impacts of innovation. Among these three groups, product- and process-oriented impacts provide a highest value for the firms that perform both product and process innovations. As far as the link between firm characteristics and the impact of innovation is considered, there is a significant difference between small and large firms with respect to their perceptions on product-oriented impact of innovation. While product-oriented impact is larger for small firms, large firms focus more on process-oriented impact. Anova results also indicate that perceptions on process-oriented impact significantly differ among exporter firms, domestic market-oriented firms and firms being active in internal and external markets. Process-oriented impact generates results in favor of exporting firms.

scholarly journals Incentives for private innovations – is public support necessary?

2020 ◽  
Vol 2020 (2) ◽  
pp. 105-139
Author(s):  
Anna Lewczuk ◽  
Jacek Lewkowicz
Keyword(s):  
Public Support ◽  
Public Spending ◽  
Added Value ◽  
Institutional Perspective ◽  
Systematic Analysis ◽  
Process Innovations ◽  
International Policies ◽  
Points Of View ◽  
Product And Process ◽  
Innovation Policies

Do firms really need public support in order to offer product and process innovations? Recent articles and professional reports reflect the importance of public support for private innovations. The issue is actual and relevant both from scientific and practical points of view. Public support for actions aimed at developing crucial innovations is an example of creating institutional incentives for the desired behaviour of firms. The question of public support for innovations is critical for ongoing national and international policies in raising the innovativeness of economies. The main goal of the paper is to review the idea of public support for innovativeness and to verify its effects in European countries empirically, by using simple probit and bivariate probit models. This paper aims to provide a systematic analysis of the problem from an institutional perspective. The results of the analysis contribute to a better understanding of the nature of public spending on private innovations and the outcome of such innovation policies. It is also an added value to the discussion over actual public policies which has been so far inconclusive

scholarly journals Effectiveness of public procurement of innovation versus supply-side innovation measures in manufacturing and service sectors

2019 ◽  
Vol 46 (5) ◽  
pp. 732-746 ◽  
Author(s):  
Dragana Radicic
Keyword(s):  
Service Sector ◽  
Public Procurement ◽  
Public Support ◽  
Process Innovation ◽  
Supply Side ◽  
Service Firms ◽  
Process Innovations ◽  
The Usa ◽  
Service Sectors ◽  
Product And Process

Abstract Most quantitative evaluations report positive but small effects of supply-side innovation measures. Although the literature suggests that demand-side measures, in particular, public procurement of innovation, might be more effective in stimulating innovation than supply-side measures, empirical evidence on this proposition is scarce. To empirically test this proposition, we utilize the Eurobarometer 2014 survey to estimate the effects from public procurement of innovation as well as from the supply-side innovation measures on product and process innovations in manufacturing and service firms in the USA and Europe. Our findings suggest that the treatment effects of public procurement of innovation are indeed larger than the effects of supply-side public support on product innovation in both manufacturing and service sectors. This finding also holds for process innovation, but only in the service sector. In contrast, in manufacturing firms, the estimated effects on process innovation are only positive and significant in firms receiving public support.

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