Evaluating the Impact of Technology Development Funds in Emerging Economies: Evidence from Latin-America

Peer Reviewed icon Peer Reviewed
Author
Hall, Bronwyn H. ;
Date issued
Jan 2008
Subject
Science and Technology
JEL code
O32 - Management of Technological Innovation and R&D;
O38 - Government Policy
Country
Argentina;
Brazil;
Chile;
Panama
Category
Working Papers
This working paper surveys impact evaluations of government Technology Development Funds (TDFs) in Argentina, Brazil, Chile and Panama. All the evaluations were done at the recipient (firm) level using data from innovation surveys, industrial surveys, and administrative records of the granting units, together with quasi-experimental econometric techniques to minimize the effects of any selection bias. The surveyed evaluations considered four levels of potential impact: R&D input additionality, behavioural additionality, increases in innovative output, and improvements in performance. The evidence suggests that TDFs do not crowd out private investment and that they positively affect R&D intensity. In addition, participation in TDFs induces a more proactive attitude of beneficiary firms towards innovation activities.