Public support to firm-level innovation: An evaluation of the FONTAR program

  • Mariano Pereira
  • Julián Martínez Correa
  • Gabriel Scattolo

Abstract

This paper studies the impact of non-refundable grants (NRG) of the Argentinean
Technological Fund (FONTAR) on firms’ innovative efforts and performance.
We use a panel database of 954 firms that applied for public support to innovate
during the period 2007-2013. Using a difference-in-differences approach, our
results show that the NRG have a positive effect on firms’ innovative intensity,
considering both the innovation activities to sales ratio and R&D to sales ratio.
These remain robust to alternative definitions of control group and the outcome
variable. Analysis of heterogeneous effects reveals that the impact was exclusively
concentrated on small and young firms.
Keywords Innovation, impact evaluation, Argentina
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How to Cite
Pereira, M., Martínez Correa, J., & Scattolo, G. (2018). Public support to firm-level innovation: An evaluation of the FONTAR program. Estudios de Economía, 45(2), 251-269. Retrieved from https://estudiosdeeconomia.uchile.cl/index.php/EDE/article/view/51350/53735
Section
Articles
Published
2018-10-25