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NOTES
1. Poster Title
• Replace the mock-up text of the poster title (”Joint Research Centre”) with the text of your own title.
• Keep the original font colour (100c 80m 0y 0k).
• Keep the flush-right justification.
• Set it in Helvetica Rounded Bold Condensed, if you own the typeface. Otherwise, in Arial, Helvetica or Verdana – plain or bold.
• Keep the original font body size (102 pt or, preferably,120 pt) and the title on a single line whenever possible. Reduce the body size and/or set the title on more than one line only if unavoidable.
2. Poster Subtitle
• Replace the mock-up text of the poster subtitle (”Place Your Poster Subtitle Here”) with the text of your own subtitle.
• Keep the original font colour (black).
• Set it in MetaPlusBook-Roman, if you own the typeface. Otherwise, in Arial, Helvetica or Verdana.
• Keep the original font body size (72 pt) and the subtitle on a single line whenever possible. Reduce the body size and/or set the subtitle on more than one line only if unavoidable.
• If your poster does not have a main subtitle, delete the subtitle mock-up text or its text-box altogether.
3. Poster Main Text and Illustrations
• Replace the mock-up text of the poster with your own text. Keep it within the boundaries of the two main-text boxes provided.
• Should you need a second colour within your text, use the same one of the poster title (100c 80m 0y 0k).
• Keep the flush-left justification.
• Set the main text in MetaPlusBook-Roman and the section headings in MetaPlusBold-Roman, if you own the typefaces. Otherwise, the main text in Arial, Helvetica or Verdana, and the section headings in their respective bold weights.
• Adjust the font body size and leading to the needs of your own text, depending on its overall length, for optimal display and legibility.
• Should you need a second level of text, set it in a smaller body size than that of your main text (and, in the case of photo captions, in italics, too).
• Place your illustrations (pictures, graphs, etc.) within the boundaries of the two main-text boxes. Adjust your text-flow as needed.
4. Contact Box
• Replace the mock-up contents of the contact box with your own data.
• Keep the contact box in place if possible. Place it elsewhere only if unavoidable for layout reasons, but in that case try, at least, to align it with some main element of the poster.
5. Additional Logos
• Should you need to display additional logos (e.g., of partner organizations or universities), reduce or enlarge them to a height within those of the JRC logo and the Directorate or Institute logo.
• Place any additional logos on the bottom of the poster, evenly spaced between the JRC and (if there is one) the Directorate or Institute logo, and vertically centred with them.
Do public subsidies affect the choice between internal and external R&D?
Sergio M. Afcha Chávez
Motivation / Objectives
The work discuss the potential effects of the public subsidies on a strategic issue to the firm: the decision of internal and external R&D expenditures.
Assuming that financial restriction is a key variable in determine internal R&D expenditures, and it is strongly linked with R&D subsidies, an endogenous switching model is specified in order to analyze the interactions of internal R&D determinants in subsidized and non subsidized firms
Methodology
An endogenous switching model is specified in order to analyze the interactions of internal R&D determinants in subsidized and non subsidized firms:
Where:
SUB1 is an observable (1,0) variable depending on the exposition to the treatment:
SUBi= 1, if firm i receive subsidies.
SUBi= 0, if firm is not a receptor of subsidies
GIDi* Firm’s Internal R&D expenditure. It is an indicator on the firm’s capabilities to apply for R&D subsidies, and an endogenous variable in the subsidies concession process.
Zi Vector of observables influencing on subsidy concession process
Xi Vector of variables influencing on R&D internal expenditures decision.
Data base
Unbalanced panel of 1078 Spanish manufacturing firms (6679 obs.) covering the 8 year period ;
Data Source: Spanish survey on business strategy (ESEE).
Main variables: Internal R&D expenditures, public subsidies, innovative outcome, size of the firm;
The sample focuses on firms with at least one year of positive R&D expenditures between
Descriptive statistics
Table of descriptive statistics show a positive relationship between the number of subsidies and % of internal R&D expenditures, innovative effort, number of workers and the size of the firms expressed in number of total workers.
Preliminary Results
Note: significance at the ***99%, **95% y *90% level . Standard errors are in parentheses.
Preliminary Conclusions
R&D Subsidies have a significant effect on R&D internal/external decisions. Endogeneity of public subsidies must be considered in order to control for this bias.
Determinants of internal R&D expenditures have a different effects on firms with subsidies compared with firms without subsidies. Predicted R&D expenditures for subsidized and non- subsidized firms, show considerable difference in internal expenditures.
Variables
R&D Subsidies
Subsidized firms
Non-Subsidized firms
Col. with Univ. and tech C.
0,64*** (0,103)
-0,362*** (0,128)
0,272* (0,142)
Number of Prod. Innov.
0,00 (0,008)
0,0037 (0,011)
0,007 (0,011)
Innov. Process
0,07 (0,078)
-0,161(0,120)
-0,03 (0,120)
Nº of domestic patents
0,10* (0,058)
0,0267(0,061)
0,179 (0,117)
Nº of foreign patents
-0,04 (0,055)
0,0567(0,063)
-0,15*** (0,108)
Innovative outcome indicators
0,27*** (0,093)
0,0128(0,119)
0,106 (0,131)
Recruit of recent graduates
0,10 (0,092)
0,1892(0,132)
0,370*** (0,136)
R&D experience
0,14 (0,090)
-0,029(0,122)
0,479*** (0,169)
Productivity
0,00 (0,001)
0,006***(0,002)
0,004*** (0,001)
Total workers
0,00 (0,000)
0,000***(0,000)
0,001*** (0,000)
Total workers 2
-7,06e-08*** (2,49e-08)
-9,40e-08*** (3,09e-08)
-3.13e-07*** (5.62e-08)
Age
0,00*** (0,001)
-0,000(0,002)
0,006** (0,002)
Labor cost
9,19e-06*** (2,62e-06)
0,000*** (1,99e-06)
0,000*** (4,23e-06)
Innovative effort
0,07*** (0,015)
0,106*** (0,015)
0,22*** (0,025)
Few competitors
0,15* (0,091)
-0,29** (0,138)
0,32*** (0,137)
Market Share
-0,02 (0,033)
0,104** (0,047)
0,07 (0,048)
Med-High Tech. Industry
0,40*** (0,107)
0,189* (0,115)
0,31*** (0,125)
_cons
-1.67*** (0,262)
6.14
30,4*** (0,232)
% of Foreign Capital
-0,00* (0,01) -
% exports
2,05e-10 (5,79e-10)
/lns1
0,47(0,053)***
/lns2
0,31(0,070)***
/r1
-10,26(0,243)***
/r2
0,6(0,215)***
sigma_1
1,6(0,08)
sigma_2
1,37(0,097)
rho_1
-0,85(0,066)
rho_2
0,53(0,153)
Contact
Sergio Afcha
Faculty of Economics and Business
University of Barcelona
Diagonal,
Barcelona / Spain
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