Fostering Innovation Activities with the Support of a Development Bank: Evidence from Brazil

33 Pages Posted: 21 Sep 2020

See all articles by Marco Carreras

Marco Carreras

Institute of Development Studies - IDS; University of Sussex - Science Policy Research Unit (SPRU)

Date Written: September 18, 2020

Abstract

I evaluate the impact of the Banco Nacional de Desenvolvimento Econômico e Social, (BNDES) disbursements on companies’ R&D intensity of companies operating in the Brazilian manufacturing sector for the period of2003-2011. Using Instrumental Variable (IV) technique, I find a crowding-in impact of receiving funding from BNDES on business-funded innovation intensity, resulting in an increased commitment in innovation activities for funded Brazilian manufacturing companies. The findings of this analysis provide new evidence regarding the industrial sector activity of the Brazilian development bank, adding on the debate about additionality/substitutability of public financial resources.

Keywords: BNDES, development bank, crowding-in/out, R&D intensity

Suggested Citation

Carreras, Marco, Fostering Innovation Activities with the Support of a Development Bank: Evidence from Brazil (September 18, 2020). SWPS 2020-16, Available at SSRN: https://ssrn.com/abstract=3695031 or http://dx.doi.org/10.2139/ssrn.3695031

Marco Carreras (Contact Author)

Institute of Development Studies - IDS ( email )

Library Road
Brighton, BN1 9RE
United Kingdom

University of Sussex - Science Policy Research Unit (SPRU) ( email )

Brighton, BN1 9SL
United Kingdom

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