Econometric Evaluation of Public Policies for Science and Innovation: A Brief Guide to Practice
Politecnico di Milano
Politecnico di Milano - Dipartimento di Ingegneria Gestionale
February 18, 2011
POLICIES FOR SCIENCE AND INNOVATION: DESIGH AND EVALUATION, pp. 60-75, M.G. Colombo, L. Grilli, L. Piscitello and C. Rossi Lamastra, eds., Elgar
This work reviews the principal econometric methods used to measure the effects of public R&D subsidies on firm performance. First, we show the main econometric challenges a researcher has to face in estimating the impact of a government policy scheme, by paying special attention to the issues of subsidy endogeneity and selection bias. Then, we review the main features of different methods. A discussion of advantages and drawbacks of each approach is offered to the reader, as well as suggestions for future improvements in this field of economic research.
Keywords: R&D Public Subsidies, Endogeneity, Selection Bias
JEL Classification: C01, C18, L53, O38Accepted Paper Series
Date posted: November 8, 2010 ; Last revised: June 30, 2012
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