Impact Evaluation of a Program of Public Funding of Private Innovation Activities: An Econometric Study of FONTAR in Argentina

This report contains an evaluation of the Argentinean Technological Fund (FONTAR), whose main objective is to fund projects presented by private firms which aim at improving their competitive performance through technological innovation activities. The main goal of this evaluation is to analyze the impact of FONTAR's programs on the innovation activities of granted firms. The authors also try to ascertain whether FONTAR contributed to improve supported firms' innovative outputs and productive performance. The evaluation is undertaken for all FONTAR's programs and separately for the Non-Reimbursable Funds (ANR) program. In order to carry out the evaluation, the authors have taken advantage of a series of econometric techniques that allow them to identify the impact of having received a credit or grant from the FONTAR on relevant outputs, distinguishing this impact from other factors that could also be affecting firms' performance.