Evaluating the impact of public subsidies on a firm’s performance: a two-stage quasi-experimental approach

In this paper we evaluate the effectiveness of regional R&D public programs in Catalonia (Spain) with a two-stage procedure. Firstly, we compare the performance of publicly subsidised companies (treated) with that of similar, but unsubsidised companies (non-treated). We use the Propensity Score...

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Detalles Bibliográficos
Autores: Duch, Néstor, Montolio, Daniel, Mediavilla Bordalejo, Mauro
Tipo de recurso: artículo
Fecha de publicación:2009
País:España
Institución:Universidad de Alcalá (UAH)
Repositorio:e_Buah Biblioteca Digital Universidad de Alcalá
Idioma:inglés
OAI Identifier:oai:ebuah.uah.es:10017/29699
Acceso en línea:http://hdl.handle.net/10017/29699
Access Level:acceso abierto
Palabra clave:R&D policy
Evaluation
Firm performance
Propensity Score Matching
Política de I+D
Evaluación
Resultados empresariales
Economía
Geografía
Sociología
Economics
Geography
Sociology
Descripción
Sumario:In this paper we evaluate the effectiveness of regional R&D public programs in Catalonia (Spain) with a two-stage procedure. Firstly, we compare the performance of publicly subsidised companies (treated) with that of similar, but unsubsidised companies (non-treated). We use the Propensity Score Matching (PSM) methodology to construct a control group which, with regard to its observable characteristics, is as similar as possible to the treated group, and that allows us to identify firms which maintain the same propensity to receive public subsidies. Secondly, and once a valid comparison group has been established, we compare the respective performance of each firm using regression techniques. As a result, we find that recipient firms, on average, seem to increase their value added as a direct result of public subsidy programs.