Title: A review of the econometric evidence on innovation policy instruments in Brazil

Authors: Carlos Tadao Kawamoto; Paulo Roberto Feldmann; James Terence Coulter Wright

Addresses: FEA – School of Economics, Business, and Accounting, University of São Paulo, Rua Bela Cintra, 321 apt.21 – CEP: 01415-000, São Paulo, SP, Brazil ' FEA – School of Economics, Business, and Accounting, University of São Paulo, Av. Prof. Luciano Gualberto, 908 – CEP: 05508-900 – São Paulo, SP – Brazil ' FEA – School of Economics, Business, and Accounting, University of São Paulo, Av. Prof. Luciano Gualberto, 908 – room, G163 – CEP: 05508-900, São Paulo, SP, Brazil

Abstract: Evaluations of innovation policy instruments have shown a proliferation in growth in the last decade in Brazil ever since the publication of PINTEC, a crucial survey conducted by the Brazilian Institute of Geography and Statistics (IBGE). The sometimes contradictory results among some studies require the development of a clearer picture of the policy effects of R&D in the country. We focus on the additionality effect of inputs from various government incentives, and survey the related empirical literature dedicated to Brazil. Our results suggest that fiscal incentives for R&D activities provide a more robust additionality effect, in comparison to non-reimbursable subsidies for innovative activities. In addition, the effect occurs more robustly with low and medium technology intensive firms than it does with high technology intensity ones.

Keywords: research and development; R&D; innovation; government incentives; fiscal incentives; reimbursable incentives; innovation policy; policy instruments; Brazil.

DOI: 10.1504/WRSTSD.2017.087126

World Review of Science, Technology and Sustainable Development, 2017 Vol.13 No.3, pp.216 - 237

Received: 01 Jun 2016
Accepted: 23 Nov 2016
Published online: 06 Oct 2017 *

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