Input, Output, and Behavioral Additionality of Innovation Subsidies

Edgard Alberto Méndez-Morales

doi:10.4067/S0718-27242019000400158

Authors

Edgard Alberto Méndez-Morales Universidad Militar Nueva Granada

DOI:

https://doi.org/10.4067/S0718-27242019000400158

Abstract

Using a Conditional Difference in Difference procedure and data for Colombia, we determine if firms that receive subsidies to innovation in the period 2010-2016 present additionality on input, output, and behavioral innovation variables. We found that there are differences among the additionalities of small and medium firms (SMEs) and big firms, and the existence of a crowding-out effect for internal R&D expenditures in SMEs. At the same time, we found additionality on R&D employment for all types of firms and the presence of experience effects introduced by subsidies, especially for SMEs. These effects are related to positive additionalities. At the same time, we cannot find additionality effects on patents and trademarks. However, we found negative additionality on sales of big companies that we relate with the way we measure this variable.

Keywords:

Parametric matching
R&D&I
difference in differences
DANE
abandonment
patents
trademarks
innovation impediments

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Author Biography

Edgard Alberto Méndez-Morales, Universidad Militar Nueva Granada

Economista investigador y consultor en temas relacionados con finanzas de la innovación y formas de financiación de empresas innovadoras y emprendimientos. Docente en temas financieros e innovación en universidades reconocidas del ámbito nacional. Amplia experiencia en análisis de proyectos de ciencia, tecnología e innovación y en consultoría de valoración de empresas tecnológicas y valoración de activos intangibles. Ph. D. en economía y gestión de la innovación de la Universidad Autónoma de Madrid

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Input, Output, and Behavioral Additionality of Innovation Subsidies

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Edgard Alberto Méndez-Morales, Universidad Militar Nueva Granada

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