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
Date Written: February 18, 2011
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: Suggested Citation