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Leonardo A. Rocha, Denis Vieira Sarmento, Carlos Alano S. Almeida and Napiê G.A. Silva
''Spillover, public investment and innovation: the impact of public investment in R&D on business innovation''
( 2020, Vol. 40 No.3 )
This research analyzes the impact of public investment on the relationship “private investment in research versus performance” of the top R&D investors. Taking a recent sample of the top investors, as well as different estimation techniques, the results show that public investments in research contribute to increase the elasticity coefficients of private investments in R&D, either linearly or nonlinearly. In the nonlinear pattern, optimal levels of public policy point to a share of total public investment of around 15.8%, thus maximizing the elasticity coefficient of private investment. Controlling the endogeneity of private investments in R&D, GMM estimates point to an underestimation of the parameters obtained by the OLS technique and robust regression, signaling an increase in the elasticity coefficient of the research. The results of this research converge with other recent studies, highlighting Azoulay et al. (2019) and Kwon and Kwon (2019).
Keywords: Innovation, R&D, spillover, robust regression, GMM
JEL: O3 - Technological Change; Research and Development: General
O1 - Economic Development: General
Manuscript Received : Aug 26 2019 Manuscript Accepted : Aug 24 2020

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