Econometric Evaluation of Public Policies for Science and Innovation: A Brief Guide to Practice

POLICIES FOR SCIENCE AND INNOVATION: DESIGH AND EVALUATION, pp. 60-75, M.G. Colombo, L. Grilli, L. Piscitello and C. Rossi Lamastra, eds., Elgar

25 Pages Posted: 8 Nov 2010 Last revised: 30 Jun 2012

Luca Grilli

Politecnico di Milano

Samuele Murtinu

University of Groningen

Date Written: February 18, 2011

Abstract

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, O38

Suggested Citation

Grilli, Luca and Murtinu, Samuele, Econometric Evaluation of Public Policies for Science and Innovation: A Brief Guide to Practice (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. Available at SSRN: https://ssrn.com/abstract=1704482

Luca Grilli

Politecnico di Milano ( email )

20134 Milan
Italy

Samuele Murtinu (Contact Author)

University of Groningen ( email )

Postbus 72
9700 AB Groningen
Netherlands

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