Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/208157 
Year of Publication: 
2019
Series/Report no.: 
IDB Working Paper Series No. IDB-WP-963
Publisher: 
Inter-American Development Bank (IDB), Washington, DC
Abstract: 
This paper estimates the direct and spillover effects of two matching grants schemes designed to promote firm-level research and development (R&D) investment in Chile on firm productivity. Because the two programs target different kinds of projects - the National Productivity and Technological Development Fund (FONTEC) subsidizes intramural R&D, while the Science and Technology Development Fund (FONDEF) finances extramural R&D carried out in collaboration with research institutes - analyzing their effects can shed light on the process of knowledge creation and diffusion. The paper applies fixed-effects techniques to a novel dataset that merges several waves of Chile's National Manufacturing Surveys collected by the National Institute of Statistics with register data on the beneficiaries of both programs. The results suggest that while both programs have had a positive impact on participants' productivity, only FONDEF-funded projects have generated positive spillovers on firms' productivity. The analysis reveals that the spillover effects on productivity display an inverted-U relationship with the intensity of public support. Spillover effects were found to occur only if firms were both geographically and technologically close.
Subjects: 
Chile
impact evaluation
innovation
matching grants programs productivity
spillover effects
JEL: 
D24
D62
L60
H43
O32
O38
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc-nd Logo
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.