Persistence in R&amp;D Performance and its Implications for the Granting of Subsidies

Arque-Castells, Pere

doi:10.1007/s11151-013-9381-0

Cited by 50 publications

(35 citation statements)

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“…We use the method proposed by Wooldridge (2005) to control for this possibility of persistence. Our results confirm 1 See, for example, the papers by Arqué-Castells and Mohnen (2012) and Arqué-Castells (2013).…”

Section: Introductionsupporting

confidence: 83%

“…Noteworthy are the studies by Busom (2000), González, Jaumandreu and Pazó (2004), González and Pazó (2008), Arqué-Castells and Mohnen (2012) and Arqué-Castells (2013). Busom (2000) takes advantage of a database containing both firms awarded aid by CDTI grants in 1988 and innovative firms not granted aid.…”

Section: Public Support and The Decision To Invest In Randdmentioning

confidence: 99%

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The impact of public support on firm propensity to engage in R&D: Spanish experience

Huergo

Trenado

Ubierna³

2016

Technological Forecasting and Social Change

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Our objective is to estimate the effect of public low-interest loans for R&D projects on the probability of performing R&D by Spanish firms. The estimations provide evidence of the effectiveness of public low-interest loans, being the stimulus effect larger for SMEs than for large firms and also higher for manufacturing than for services. Supported firms are approximately 25 percentage points more likely to self-finance their R&D investments than nonsupported firms. The effect is quite relevant if we consider that the probability of selffinancing R&D activities is 53.2 percentage points higher when the firm has invested in R&D activities in the previous year. This result suggests that firms can be induced persistently to perform R&D activities by means of loans.JEL Classification: H81, L20, O38.

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Section: Introductionsupporting

confidence: 83%

Section: Public Support and The Decision To Invest In Randdmentioning

confidence: 99%

The impact of public support on firm propensity to engage in R&D: Spanish experience

Huergo

Trenado

Ubierna³

2016

Technological Forecasting and Social Change

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“…In any case, the probability of persisting in cooperation agreements in innovation in the case of Spanish firms seems not to be as high as is observed in R&D activities that have been reported in previous studies, nor are transitions as infrequent (see, for instance, Arqué-Castells, 2013). 6 This can be related to the fact that a firm may decide to carry cooperation activities as a strategy to innovate; however, this is not the only way to develop innovation, so that according to different objectives, it may not always be necessary to follow cooperative agreements.…”

Section: Descriptive Analysismentioning

confidence: 48%

“…In addition, we assess whether firms cooperate persistently on top of the widely documented persistence that is found in R&D activities (Peters, 2009;Raymond et al 2010;Triguero and Córcoles, 2013;Arqué-Castells, 2013; among others). We also aim at providing evidence on the extent to which having participated in technological collaborations with one type of partner in the past influences current collaborative agreements --not only with the same but also with other type of partners.…”

Section: Introductionmentioning

confidence: 99%

Are Collaborative Agreements in Innovation Activities Persistent at the Firm Level? Empirical Evidence for the Spanish Case

Badillo

Moreno

2015

Rev Ind Organ

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We provide evidence on the dynamics in firms' cooperation behaviour in innovation activities. Our main objective is to analyse if collaborative agreements are persistent at the firm level; and, in such a case, to study what are the main drivers of this phenomenon. We also study to what extent such persistence is different from persistence in R&D, so that the former exists on top of the latter. Finally, we deal with the differentiated persistence pattern of collaboration agreements for different types of partners, as well as the possibility of finding persistence across them. We follow a dynamic approach in the analysis of cooperation persistence: We take into account the unobserved individual heterogeneity and address the initial conditions problem. We use a representative sample of Spanish firms for the period 2002-2010.Keywords: Cooperation in innovation; Innovative Spanish firms; Persistence; Technological partners JEL classification: L24; O32; D22; C23 3 IntroductionEmpirical contributions to the study of cooperation in innovation have expanded significantly in the last decades (Tether, 2002;Miotti and Sachwald, 2003;López, 2008;Abramovsky et al., 2009 We follow a dynamic approach in the analysis of cooperation persistence: We take into account unobserved individual heterogeneity and address the initial conditions problem for a sample of Spanish firms in the period 2002-2010. On average, we find that a firm that cooperates in t-1 has a probability of cooperating in t that is around 33 percentage points higher than that of a firm that did not cooperate in the previous period. We also show that such persistence is genuine in the sense that it is beyond the persistence that is observed in R&D. While the highest persistence is found in the case of vertical collaboration, we also observe that cooperation agreements with research-based agents increase the likelihood of cooperating in the future with a different type of partner.After this introduction, Section 2 proceeds with the literature review. Section 3 describes the database that is used, and Section 4 presents the empirical model. In Section 5 we present and discuss our results; and the main conclusions of the paper are presented in Section 6. Literature review and hypothesis Persistence in cooperation in innovation activitiesThe degree of cooperation persistence of a firm could be defined as the positive impact of past collaborations on present cooperation agreements. In principle, there are several potential sources for persistent behaviour (Heckman, 1981a). First, it might be caused by true state dependence: The decision to innovate through cooperation in one period in itself enhances the 5 probability to cooperate in the subsequent period. Second, firms may have some specific characteristics that make them prone to cooperate. To the extent that these characteristics persist over time, they will inevitably induce persistence in cooperation agreements as well.Such features can be classified into observable attributes, such as firm size or a firm's ...

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“…In a model of firm-level investment in R&D (David et al, 2000), subsidies are expected to lower the marginal cost of R&D and stimulate current and even future R&D expenditure (Arqué-Castells, 2013;Lach, 2002;Takalo et al, 2013). A very important proportion of the cost of R&D projects is expenditure on R&D personnel (Goolsbee, 1998;Hall, 2002).…”

Section: Public Subsidies Randd Projects and Human Resourcesmentioning

confidence: 99%

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

Afcha

García‐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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Persistence in R&D Performance and its Implications for the Granting of Subsidies

Cited by 50 publications

References 24 publications

The impact of public support on firm propensity to engage in R&D: Spanish experience

The impact of public support on firm propensity to engage in R&D: Spanish experience

Are Collaborative Agreements in Innovation Activities Persistent at the Firm Level? Empirical Evidence for the Spanish Case

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

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