Building Programme Evaluation into the Design of Public Research-Support Programmes

Jaffe, Adam B.

doi:10.1093/oxrep/18.1.22

Cited by 153 publications

(102 citation statements)

References 18 publications

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“…This allocation of subsidies may have an upgrading effect on the educational level required of the R&D staff that will carry out the subsidized R&D projects. In principle, the policy prescription and objective of public agencies is to maximise social welfare and they should therefore direct their R&D subsidies towards projects that have greater social benefits, frequently in cooperation with public institutions (David et al, 2000;Jaffe, 2002).…”

Section: Public Subsidies Randd Projects and Human Resourcesmentioning

confidence: 99%

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The impact of R&D subsidies on R&D employment composition

Afcha

Garcia-Quevedo

2014

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In this paper we examine the impact of subsidies granted at national and regional levels on a set of R&D employment variables and we specifically seek to identify the existence of additional effects of these public subsidies on the R&D human resources of firms. We begin by assessing the effects of public funds on private R&D expenditure and on the number of R&D employees, and then focus on the impact of these funds on the composition of human resources engaged in R&D classified by occupation and level of education.The data used are from the Spanish Technological Innovation Panel for the period 2006-2011. To control for selection bias and endogeneity, a combination of non-parametric matching techniques are used. Our results show that R&D subsidies increase the number of R&D employees but no contemporaneous increase is found in the average level of qualification of R&D staff members in subsidized firms. Nevertheless, in the subsequent years there is a positive effect on the recruitment of PhD holders. The effects of public support are heterogeneous and are dependent on the source of the subsidy and the firms' characteristics.Keywords: R&D subsidies, R&D employment, matching estimators, technology policy. JEL Codes: O38, J24, H25, C14. Acknowledgements:We are very grateful for the suggestions from two anonymous referees that were very useful in improving the paper. We would also like to thank D. Czarnitzki, J. G. Díaz-Gamarra, M. Mediavilla and F. Todeschini for valuable comments.2

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Section: Public Subsidies Randd Projects and Human Resourcesmentioning

confidence: 99%

“…R&D subsidies are granted in these calls in a process similar to international procedures (Jaffe, 2002;Takalo et al, 2013).…”

Section: Institutional Framework: Randd and Innovation Policy In Spainmentioning

confidence: 99%

The impact of R&D subsidies on R&D employment composition

Afcha

Garcia-Quevedo

2014

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“…One likely explanation for the lack of clear evidence is econometric problems related to selection, see David, Hall and Toole (2000), Klette, Møen and Griliches (2000), Jaffe (2002) and Cerulli (2010) for surveys. Wallsten (2000) explains the basic problem in one sentence: "Regressing some measure of innovation on the subsidy can establish a correlation between grants and R&D, but it cannot determine whether grants increase firm R&D or whether firms that do more R&D receive more grants."…”

Section: Introductionmentioning

confidence: 99%

“…Both analyze the effects of the SBIR-program in the US using an IV approach. Reflecting on these difficulties, Jaffe (2002) suggests that evaluation should be built into the design of public research support programs. More specifically, he notes that in a "canonical research programme" the agency that disburses money for research typically solicits evaluation reports from outside experts and then organizes a committee to rank or group the proposals in terms of priority for funding.…”

Section: Introductionmentioning

confidence: 99%

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Estimating the additionality of R&D subsidies using proposal evaluation data to control for research intentions

2014

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Empirical examination of whether R&D subsidies crowd out private investments has been hampered by selection problems. A particular worry is that project quality and research intentions may be correlated with the likelihood of receiving subsidies. Using proposal evaluation data to control for research intentions, we do not find strong evidence suggesting that this type of selection creates a severe bias. Proposal evaluation grades strongly predict R&D investments and reduce selection bias in cross-sectional regressions, but there is limited variation in grades within firms over time. Hence, in our sample, unobserved project quality is largely absorbed by firm fixed effects. Our best estimate of the short-run additionality of R&D subsidies is 1.15, i.e., a one-unit increase in subsidy increases total R&D expenditure in the recipient firm by somewhat more than a unit. We demonstrate, however, that there is measurement error in the subsidy variable. Additionality is therefore likely to be underestimated. JEL CLASSIFICATION: O38, O32, L53, H25, H32

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Building Programme Evaluation into the Design of Public Research-Support Programmes

Cited by 153 publications

References 18 publications

The impact of R&D subsidies on R&D employment composition

The impact of R&D subsidies on R&D employment composition

Estimating the additionality of R&D subsidies using proposal evaluation data to control for research intentions

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