University of Limerick
Browse
DJEI_working_paper_11_Jan_2017.pdf (1.02 MB)

Dynamic complementarities in the policy instrument mix for innovation: a firm-level evaluation using panel data

Download (1.02 MB)
report
posted on 2017-07-26, 08:35 authored by KEVIN MULLIGANKEVIN MULLIGAN, HELENA LENIHANHELENA LENIHAN, Justin Doran
Achieving policy goals often depends crucially on the interactions and interdependencies between different science and innovation policy instruments within a broad policy mix. This paper examines the complex and dynamic impacts of the policy mix of science and innovation policy instruments available to firms in Ireland. Combining the Annual Business Survey of Economic Impact (ABSEI) with administrative data from Enterprise Ireland (EI), IDA Ireland (IDA), and Science Foundation Ireland (SFI), we apply a formal test for the presence of complementarities in the joint use R&D tax credits and direct EI or IDA innovation subsidies or SFI collaborations at the firm-level. In static terms we find no evidence of complementarity, but in dynamic terms we find strong evidence that adding EI or IDA subsidies or SFI collaborations to firms already receiving R&D tax credits promotes complementarity. Adding R&D tax credits to firms already receiving EI or IDA subsidies has no effect. Interaction effects between SFI collaborations and R&D tax credits differ significantly to interaction effects between EI or IDA subsidies and R&D tax credits. These findings highlight the importance of taking a policy mix approach to impact evaluation, which distinguishes between different kinds of policy instrument interaction and highlights the potential for complementarities and tensions within these interactions.

Funding

Using the Cloud to Streamline the Development of Mobile Phone Apps

Innovate UK

Find out more...

History

Publication

Department of Jobs, Enterprise & Innovation (invited seminar);

Publisher

Department of Jobs, Enterprise & Innovation

Note

n/a

Other Funding information

SFI, IRC

Language

English

Usage metrics

    University of Limerick

    Categories

    No categories selected

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC