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Evaluating Effectiveness of Public Support to Industrial R&D in Turkey Through Input and Output Additionality
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| Presenter(s):
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| Sinan Tandogan, The Scientific and Technological Research Council of Turkey, sinantandogan@gmail.com
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| M Teoman Pamukcu, Middle East Technical University, Ankara, pamukcu@metu.edu.tr
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| Abstract:
In this paper, two quantitative studies examining the causal relations between direct public support and R&D activities of beneficiary firms are presented. The first study, which uses an econometric model, indicates that R&D subsidy is an important determinant of private R&D intensity. In the second study, adopting the semi-parametric propensity score matching and differences-in-difference methods and using a panel dataset, effectiveness of public grant for industrial R&D projects in Turkey is examined. The results indicate program-induced input additionality in R&D personnel, R&D intensity and R&D expenditure per employee of the beneficiary firms. However, no statistically significant output additionality is observed in the same period, possibly because a longer time series dataset is needed. Sufficient evidence was obtained to conclude that government's industrial R&D project support program has encouraged most private firms in Turkey to increase their R&D spending and R&D personnel in the period of 2003-2006.
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Evaluating the Additionality and Certification Effects of Research and Innovation Policy on Small Business Start-Ups: An Inflow-Sampling and Counterfactual Approach
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| Presenter(s):
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| Reynold Galope, Georgia State University, reynold.galope@gatech.edu
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| Abstract:
This paper proposes to examine the effectiveness of a U.S. federal technology program on inducing innovative effort among small business start-ups using a new sample and methods motivated by the counterfactual approach to causation. Its focus is the additionality and certification effects of the Small Business Innovation Research (SBIR) program, a federal program that co-finances the development of pre-competitive products, processes, or technologies with small firms. Our preliminary empirical results show that recipient small business start-ups spent more than four times in research and development (R&D) as much as their observationally similar counterparts did, suggesting that the SBIR grants did not crowd out firm-financed R&D. We will also examine the effect of the SBIR grant on the small business start-ups' ability (1) to introduce product and process innovations, and (2) to attract external capital necessary for the firm's survival, growth, and long-run innovative capacity.
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