| Imprint: |
Universitat Autònoma de Barcelona. Departament d'Economia Aplicada 2020 |
| Description: |
70 p. |
| Abstract: |
We investigate whether the impact of direct support for business investment in R&D and innovation varies over the business cycle. We address several questions: whether firms that obtain public support in a recession differ from firms that obtain it during expansions; whether the impact of support is smaller in recessions than in expansions, and whether effects vary with the treatment pattern. Using firm-level data from Spain during the period 2005 to 2014, we combine propensity score matching and difference-in-differences methods to estimate firms' response to direct support in different phases of the cycle. Two findings stand out. First, while the impact of support on monetary investment in innovation is pro-cyclical, it is countercyclical in terms of the employee-time allocation to innovation activities. Second, the additionality of a one-year treatment is smaller than that of longer treatments, or repeate program participation. Firms receiving public support during the recession have assigned more employee time to innovation activities than a matched control group, preventing a decline of knowledge capital during the big recession. |
| Grants: |
Ministerio de Economía y Competitividad RTI2018-095799-B-I00
Ministerio de Economía y Competitividad ECO2017-86305-C4-2-R
Agència de Gestió d'Ajuts Universitaris i de Recerca 2017/SGR-207
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| Rights: |
Aquest document està subjecte a una llicència d'ús Creative Commons. Es permet la reproducció total o parcial, la distribució, i la comunicació pública de l'obra, sempre que no sigui amb finalitats comercials, i sempre que es reconegui l'autoria de l'obra original. No es permet la creació d'obres derivades.  |
| Language: |
Anglès |
| Series: |
Departament d'Economia Aplicada. Documents de treball |
| Series: |
Document de treball (Universitat Autònoma de Barcelona. Departament d'Economia Aplicada) ; 01.20 |
| Document: |
Working paper |
| Subject: |
R&D subsidies ;
Policy evaluation ;
Business cycle ;
Additionality |
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