Input, Output, and Behavioral Additionality of Innovation Subsidies

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.

Government innovation subsidy, executives’ academic capital and innovation quality: Evidence from pharmaceutical companies in China

“…Concerning the mechanism of innovation subsidy, the majority of research have focused on the direct impact path of innovation subsidy to boost enterprises’ R&D investment funds and hence stimulate R&D innovation ( Almus and Czarnitzki, 2003 ; Bai et al, 2019 ; Hu et al, 2020 ). Several studies have also examined the behavioral additionality of innovation subsidy ( Clarysse et al, 2009 ; Méndez-Morales and Muñoz, 2019 ). Using both theoretical ( Kleer, 2010 ; Takalo and Tanayama, 2010 ; Su and Li, 2021 ) and empirical models ( Feldman and Kelley, 2006 ; Meuleman and De Maeseneire, 2012 ; Li et al, 2021 ), they test the impact of innovation subsidy on the behavioral decisions of external investors.…”

La inversión en marcas y su relación con los resultados empresariales

“…En este contexto, los gerentes, académicos y Gobiernos han entendido la relevancia de los activos intangibles como una forma de agregar valor a las compañías y, de hecho, existen grandes conglomerados políticos que buscan generar estrategias para que las empresas incrementen su actividad relacionada con la generación de intangibles, estas políticas han sido estudiadas en el largo plazo y se ha encontrado que generan efectos positivos a nivel de la empresa (Gupta et al, 2020;Herrera et al, 2019;Lin et al, 2021;Méndez-Morales & Muñoz, 2019).…”