The empirical evidence concerning the impact of Research and Development (R&D henceforth) subsidies on both sides of the innovation process (input and output) and the overall performance of the firm is mixed. Moreover, while the role of regions in implementing innovation policies has increased since the last decade, little is known on the effectiveness of a regional policy. This paper analyzes the effectiveness of a local R&D policy implemented in the Italian province of Trento, during the period 2002-07. The econometric analysis is based on counterfactual models. We evaluate the achievements of the local policy maker with respect to the following objectives: (i) prompt additional investment in innovation; (ii) enhance the overall performance of subsidized firms operating in the province of Trento. We find that R&D subsidies positively affect investments in intangible assets and human capital, while they have no effect on firms’ turnover, labor productivity and profitability

Research and development subsidies: the effectiveness of a regional policy

CORSINO, MARCO;
2014

Abstract

The empirical evidence concerning the impact of Research and Development (R&D henceforth) subsidies on both sides of the innovation process (input and output) and the overall performance of the firm is mixed. Moreover, while the role of regions in implementing innovation policies has increased since the last decade, little is known on the effectiveness of a regional policy. This paper analyzes the effectiveness of a local R&D policy implemented in the Italian province of Trento, during the period 2002-07. The econometric analysis is based on counterfactual models. We evaluate the achievements of the local policy maker with respect to the following objectives: (i) prompt additional investment in innovation; (ii) enhance the overall performance of subsidized firms operating in the province of Trento. We find that R&D subsidies positively affect investments in intangible assets and human capital, while they have no effect on firms’ turnover, labor productivity and profitability
2014
The economics of knowledge generation and distribution: the role of interactions in the system dynamics of innovation and growth
223
251
Marco Corsino; Roberto Gabriele; Anna Giunta
File in questo prodotto:
Eventuali allegati, non sono esposti

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/378042
 Attenzione

Attenzione! I dati visualizzati non sono stati sottoposti a validazione da parte dell'ateneo

Citazioni
  • ???jsp.display-item.citation.pmc??? ND
  • Scopus 5
  • ???jsp.display-item.citation.isi??? 2
social impact