Do Subsidies to Commercial R&amp;D Reduce Market Failures?  Microeconomic Evaluation Studies

Klette, Tor Jakob; Møen, Jarle; Griliches, Zvi

doi:10.3386/w6947

Cited by 97 publications

(73 citation statements)

References 45 publications

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“…We therefore need to control for firm heterogeneous characteristics to get comparable groups of firms. 8 Alternative methods have been proposed in the literature to construct the correct sample counterpart for the missing information on the outcomes had the firms not been treated when no randomized control groups are available (see, e.g., Heckman et al, 1998;Heckman et al, 1999;Klette et al, 2000;Jaffe, 2002;Blundell and Costa Dias, 2002;Lee, 2005;Smith and Todd, 2005a). Difference-in-Differences is one of these methods.…”

Section: Specificallymentioning

confidence: 99%

“…Note, however, that there may be non-random differences between assisted and non-assisted firms that may lead to potentially different exports. Failure to account for these differences would clearly produce a selection bias in estimated impacts (see, e.g., Heckman et al, 1998;Klette et al, 2000). We therefore need to control for firm heterogeneous characteristics to get comparable groups of firms.…”

Section: Specificallymentioning

confidence: 99%

“…Moreover, as reported by Egan and Moody (1992), buyers from developed countries prefer renewable, short-term (annual) contracts, rather than long term contracts to prevent free-riding. Klette et al, 2000). A few recent papers have used firm-level data to evaluate more rigorously the impact of public policies on firm export behavior.…”

Section: Introductionmentioning

confidence: 99%

See 2 more Smart Citations

Is export promotion effective in developing countries? Firm-level evidence on the intensive and the extensive margins of exports

Martincus

Carballo

2008

Journal of International Economics

197

119

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. How effective are export promotion activities in developing countries? What are the channels through which export promotion affects firms' exports, the intensive margin or the extensive margin? Empirical evidence in this respect is scarce. We aim at filling this gap in the literature by providing evidence on the impact of export promotion on export performance using a unique firm-level dataset for Peru over the period [2001][2002][2003][2004][2005]. We find that export promotion actions are associated with increased exports, primarily along the extensive margin, both in terms of markets and products. This result is robust across alternative specifications and estimation methods. Terms of use: Documents in

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Section: Specificallymentioning

confidence: 99%

Section: Specificallymentioning

confidence: 99%

See 1 more Smart Citation

Is export promotion effective in developing countries? Firm-level evidence on the intensive and the extensive margins of exports

Martincus

Carballo

2008

Journal of International Economics

197

119

View full text Add to dashboard Cite

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“…13 In order to estimate this effect consistently, an unbiased estimate of the expected counterfactual is required. Alternative methods have been proposed in the literature to construct the correct sample counterpart for the missing information on the outcomes realized if firms had not been assisted when no randomized control groups are available (see, e.g., Heckman et al, 1998;Klette et al, 2000;Jaffe, 2002;Blundell and Costa Dias, 2002;Lee, 2005;Smith and Todd, 2005a). Matching is one of these methods and consists of pairing each assisted firm with the more similar members of the non-assisted group on the basis of their observable characteristics and then 12 URUGUAY XXI is Uruguay's Institute for Promotion of Investments and Exports of Goods and Services.…”

Section: Introductionmentioning

confidence: 99%

Entering new country and product markets: does export promotion help?

Martincus

Carballo

2010

Rev World Econ

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Entering new export markets is primarily a discrete choice. Even though several empirical papers have used modeling strategies consistent with this fact, no study has examined the effects of public policies aimed at affecting this decision within this setting. In this paper we assess the impact of trade promotion activities on export outcomes using trade support and highly disaggregated export data for the whole population of exporters of a small developing country, Uruguay, over the period 2000-2007 to estimate a binary outcome model which allows for unobserved heterogeneity. We find that trade supporting activities have helped firms reach new destination countries and introduce new differentiated products. We would like to thank URUGUAY XXI which kindly provided us with export and trade promotion assistance data for Uruguayan firms. We also wish to thank Alberto Abadie, who kindly shared with us the code to implement his semi-parametric difference-indifferences estimator; and Juan Blyde, Mauricio Mesquita Moreira, and Matthew Shearer for valuable comments and suggestions. We owe gratitude to Mariana Sobral de Elia for competent editing assistance. Usual disclaimers apply. Terms of use: Documents in2

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“…For instance, sector analysis of incentives for business innovation has found significant crowding out effects (Popp and Newell, 2009); methodological issues have also been raised. For discussion of the general assessment of the effects of these programs in developed countries see Klette, Moen, and Griliches (2009). phase), which means strengthening areas such as engineering, design, distribution and logistics, marketing, servicing of manufactured products, and R&D.…”

Section: Indirect Beneficiaries (Externalities)mentioning

confidence: 99%

The New Imperative of Innovation: Policy Perspectives for Latin America and the Caribbean

Navarro¹,

Benavente²,

Crespi³

2016

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The main purpose of this study is to present the conceptual basis that supports science, technology, and innovation (STI) policy in Latin America and the Caribbean (LAC). It starts by clarifying STI relationship, both conceptual and empirical, to economic growth and it explains how market and coordination failures hinder innovation. Then, it discusses a variety of demand-and supply-side policies aimed at addressing these private sector and institutional insufficiencies. In the specific case of LAC, it examines the region's underperformance in innovation relative to both emerging and advanced economies, and analyses the degree to which scientific productivity and knowledge inputs have led to accelerated economic development. Finally, the publication presents five dimensions of success for STI policies based on international best practices that should stimulate innovation and economic growth and guide the IDB's work in STI in the region. Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of the IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC-IGO license.

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Do Subsidies to Commercial R&D Reduce Market Failures? Microeconomic Evaluation Studies

Cited by 97 publications

References 45 publications

Is export promotion effective in developing countries? Firm-level evidence on the intensive and the extensive margins of exports

Is export promotion effective in developing countries? Firm-level evidence on the intensive and the extensive margins of exports

Entering new country and product markets: does export promotion help?

The New Imperative of Innovation: Policy Perspectives for Latin America and the Caribbean

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