Assessing the impact of public support for innovation in an emerging innovation system
by Juan Fernández-Sastre; Fernando Martín-Mayoral
International Journal of Technological Learning, Innovation and Development (IJTLID), Vol. 9, No. 1, 2017

Abstract: In developing countries, most public programs supporting innovation are intended to enlarge firms' technological capabilities. Although these programs may induce firms to change their innovative behaviour, their effects have not been evaluated yet. This paper examines the impact of various innovation support programs upon firms' innovation inputs in the context of an emerging innovation system. Following Leuven and Oosterbeek (2008) in order to control for selection bias, we narrow down the comparison group by only taking into account the firms that applied to at least one program but were not accepted for any. Results show that only personal training and technology adoption and management programs contribute to an increase in R&D intensity, while personal training and export promotion programs increase innovation expenditures. These results suggest that in developing countries public support for innovation should be more concerned with competence building rather than with the exploitation of the existing innovation frontiers.

Online publication date: Fri, 10-Mar-2017

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